Correlation Between Samsonite International and 361 Degrees
Can any of the company-specific risk be diversified away by investing in both Samsonite International and 361 Degrees at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samsonite International and 361 Degrees into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsonite International SA and 361 Degrees International, you can compare the effects of market volatilities on Samsonite International and 361 Degrees 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 Samsonite International with a short position of 361 Degrees. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsonite International and 361 Degrees.
Diversification Opportunities for Samsonite International and 361 Degrees
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsonite and 361 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Samsonite International SA and 361 Degrees International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Degrees International and Samsonite International 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 Samsonite International SA are associated (or correlated) with 361 Degrees. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Degrees International has no effect on the direction of Samsonite International i.e., Samsonite International and 361 Degrees go up and down completely randomly.
Pair Corralation between Samsonite International and 361 Degrees
Assuming the 90 days horizon Samsonite International SA is expected to under-perform the 361 Degrees. But the pink sheet apears to be less risky and, when comparing its historical volatility, Samsonite International SA is 1.96 times less risky than 361 Degrees. The pink sheet trades about -0.01 of its potential returns per unit of risk. The 361 Degrees International is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 55.00 in 361 Degrees International on August 27, 2024 and sell it today you would lose (6.00) from holding 361 Degrees International or give up 10.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.29% |
| Values | Daily Returns |
Samsonite International SA vs. 361 Degrees International
Performance |
| Timeline |
| Samsonite International |
| 361 Degrees International |
Samsonite International and 361 Degrees Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsonite International and 361 Degrees
The main advantage of trading using opposite Samsonite International and 361 Degrees positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsonite International position performs unexpectedly, 361 Degrees 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 361 Degrees will offset losses from the drop in 361 Degrees' long position.| Samsonite International vs. American Rebel Holdings | Samsonite International vs. American Rebel Holdings | Samsonite International vs. Crocs Inc | Samsonite International vs. On Holding |
| 361 Degrees vs. American Rebel Holdings | 361 Degrees vs. American Rebel Holdings | 361 Degrees vs. Crocs Inc | 361 Degrees vs. On Holding |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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