Correlation Between Under Armour and CT Real
Can any of the company-specific risk be diversified away by investing in both Under Armour and CT Real 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 Under Armour and CT Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Under Armour C and CT Real Estate, you can compare the effects of market volatilities on Under Armour and CT Real 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 Under Armour with a short position of CT Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and CT Real.
Diversification Opportunities for Under Armour and CT Real
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Under and CTRRF is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and CT Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Real Estate and Under Armour 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 Under Armour C are associated (or correlated) with CT Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Real Estate has no effect on the direction of Under Armour i.e., Under Armour and CT Real go up and down completely randomly.
Pair Corralation between Under Armour and CT Real
Allowing for the 90-day total investment horizon Under Armour C is expected to generate 57.38 times more return on investment than CT Real. However, Under Armour is 57.38 times more volatile than CT Real Estate. It trades about 0.11 of its potential returns per unit of risk. CT Real Estate is currently generating about 0.22 per unit of risk. If you would invest 790.00 in Under Armour C on September 1, 2024 and sell it today you would earn a total of 87.00 from holding Under Armour C or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Under Armour C vs. CT Real Estate
Performance |
| Timeline |
| Under Armour C |
| CT Real Estate |
Under Armour and CT Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and CT Real
The main advantage of trading using opposite Under Armour and CT Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, CT Real 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 CT Real will offset losses from the drop in CT Real's long position.| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
| CT Real vs. Boston Properties | CT Real vs. Kilroy Realty Corp | CT Real vs. SL Green Realty | CT Real vs. Vornado Realty Trust |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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