Correlation Between Skechers USA and TRAVELERS
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By analyzing existing cross correlation between Skechers USA and TRAVELERS INS GROUP, you can compare the effects of market volatilities on Skechers USA and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and TRAVELERS.
Diversification Opportunities for Skechers USA and TRAVELERS
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skechers and TRAVELERS is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS GROUP 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INS GROUP has no effect on the direction of Skechers USA i.e., Skechers USA and TRAVELERS go up and down completely randomly.
Pair Corralation between Skechers USA and TRAVELERS
Considering the 90-day investment horizon Skechers USA is expected to generate 2.33 times more return on investment than TRAVELERS. However, Skechers USA is 2.33 times more volatile than TRAVELERS INS GROUP. It trades about 0.31 of its potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.17 per unit of risk. If you would invest 6,726 in Skechers USA on October 23, 2024 and sell it today you would earn a total of 653.00 from holding Skechers USA or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.95% |
| Values | Daily Returns |
Skechers USA vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| Skechers USA |
| TRAVELERS INS GROUP |
Skechers USA and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and TRAVELERS
The main advantage of trading using opposite Skechers USA and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
| TRAVELERS vs. Park Electrochemical | TRAVELERS vs. BJs Restaurants | TRAVELERS vs. Harmony Gold Mining | TRAVELERS vs. Mangazeya Mining |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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