Correlation Between Suburban Propane and Skechers USA
Can any of the company-specific risk be diversified away by investing in both Suburban Propane and Skechers USA 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 Suburban Propane and Skechers USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suburban Propane Partners and Skechers USA, you can compare the effects of market volatilities on Suburban Propane and Skechers USA 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 Suburban Propane with a short position of Skechers USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and Skechers USA.
Diversification Opportunities for Suburban Propane and Skechers USA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Suburban and Skechers is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners and Skechers USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skechers USA and Suburban Propane 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 Suburban Propane Partners are associated (or correlated) with Skechers USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skechers USA has no effect on the direction of Suburban Propane i.e., Suburban Propane and Skechers USA go up and down completely randomly.
Pair Corralation between Suburban Propane and Skechers USA
Considering the 90-day investment horizon Suburban Propane Partners is expected to generate 1.51 times more return on investment than Skechers USA. However, Suburban Propane is 1.51 times more volatile than Skechers USA. It trades about 0.1 of its potential returns per unit of risk. Skechers USA is currently generating about 0.11 per unit of risk. If you would invest 1,843 in Suburban Propane Partners on August 30, 2024 and sell it today you would earn a total of 92.00 from holding Suburban Propane Partners or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suburban Propane Partners vs. Skechers USA
Performance |
| Timeline |
| Suburban Propane Partners |
| Skechers USA |
Suburban Propane and Skechers USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suburban Propane and Skechers USA
The main advantage of trading using opposite Suburban Propane and Skechers USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane position performs unexpectedly, Skechers USA 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 Skechers USA will offset losses from the drop in Skechers USA's long position.| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. NewJersey Resources | Suburban Propane vs. Atmos Energy | Suburban Propane vs. Chesapeake Utilities |
| Skechers USA vs. Steven Madden | Skechers USA vs. Caleres | Skechers USA vs. Weyco Group | Skechers USA vs. Designer Brands |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |