Correlation Between Stevanato Group and Skechers USA
Can any of the company-specific risk be diversified away by investing in both Stevanato Group 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 Stevanato Group and Skechers USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stevanato Group SpA and Skechers USA, you can compare the effects of market volatilities on Stevanato Group 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 Stevanato Group with a short position of Skechers USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stevanato Group and Skechers USA.
Diversification Opportunities for Stevanato Group and Skechers USA
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stevanato and Skechers is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Stevanato Group SpA and Skechers USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skechers USA and Stevanato Group 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 Stevanato Group SpA 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 Stevanato Group i.e., Stevanato Group and Skechers USA go up and down completely randomly.
Pair Corralation between Stevanato Group and Skechers USA
Given the investment horizon of 90 days Stevanato Group SpA is expected to generate 1.59 times more return on investment than Skechers USA. However, Stevanato Group is 1.59 times more volatile than Skechers USA. It trades about 0.02 of its potential returns per unit of risk. Skechers USA is currently generating about -0.03 per unit of risk. If you would invest 2,005 in Stevanato Group SpA on September 1, 2024 and sell it today you would lose (2.00) from holding Stevanato Group SpA or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stevanato Group SpA vs. Skechers USA
Performance |
| Timeline |
| Stevanato Group SpA |
| Skechers USA |
Stevanato Group and Skechers USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stevanato Group and Skechers USA
The main advantage of trading using opposite Stevanato Group and Skechers USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stevanato Group 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.| Stevanato Group vs. Haemonetics | Stevanato Group vs. Merit Medical Systems | Stevanato Group vs. AngioDynamics | Stevanato Group vs. AptarGroup |
| Skechers USA vs. Deckers Outdoor | Skechers USA vs. On Holding | Skechers USA vs. Crocs Inc | 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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