Correlation Between Under Armour and BRP
Can any of the company-specific risk be diversified away by investing in both Under Armour and BRP 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 BRP 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 BRP Inc, you can compare the effects of market volatilities on Under Armour and BRP 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 BRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and BRP.
Diversification Opportunities for Under Armour and BRP
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Under and BRP is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and BRP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRP Inc 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 BRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRP Inc has no effect on the direction of Under Armour i.e., Under Armour and BRP go up and down completely randomly.
Pair Corralation between Under Armour and BRP
Allowing for the 90-day total investment horizon Under Armour C is expected to generate 4.13 times more return on investment than BRP. However, Under Armour is 4.13 times more volatile than BRP Inc. It trades about 0.07 of its potential returns per unit of risk. BRP Inc is currently generating about -0.18 per unit of risk. If you would invest 793.00 in Under Armour C on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Under Armour C or generate 6.31% 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. BRP Inc
Performance |
| Timeline |
| Under Armour C |
| BRP Inc |
Under Armour and BRP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and BRP
The main advantage of trading using opposite Under Armour and BRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, BRP 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 BRP will offset losses from the drop in BRP's long position.| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |