Correlation Between Skechers USA and BATSLN
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By analyzing existing cross correlation between Skechers USA and BATSLN 475 01 NOV 42, you can compare the effects of market volatilities on Skechers USA and BATSLN and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Skechers USA with a short position of BATSLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and BATSLN.
Diversification Opportunities for Skechers USA and BATSLN
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Skechers and BATSLN is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and BATSLN 475 01 NOV 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BATSLN 475 01 and Skechers USA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Skechers USA are associated (or correlated) with BATSLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BATSLN 475 01 has no effect on the direction of Skechers USA i.e., Skechers USA and BATSLN go up and down completely randomly.
Pair Corralation between Skechers USA and BATSLN
Considering the 90-day investment horizon Skechers USA is expected to under-perform the BATSLN. But the stock apears to be less risky and, when comparing its historical volatility, Skechers USA is 1.27 times less risky than BATSLN. The stock trades about -0.01 of its potential returns per unit of risk. The BATSLN 475 01 NOV 42 is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 8,060 in BATSLN 475 01 NOV 42 on September 5, 2024 and sell it today you would lose (192.00) from holding BATSLN 475 01 NOV 42 or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.4% |
| Values | Daily Returns |
Skechers USA vs. BATSLN 475 01 NOV 42
Performance |
| Timeline |
| Skechers USA |
| BATSLN 475 01 |
Skechers USA and BATSLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and BATSLN
The main advantage of trading using opposite Skechers USA and BATSLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, BATSLN can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BATSLN will offset losses from the drop in BATSLN's long position.| Skechers USA vs. On Holding | Skechers USA vs. Crocs Inc | Skechers USA vs. Designer Brands | Skechers USA vs. Adidas AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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