Correlation Between Under Armour and GAMCO Global
Can any of the company-specific risk be diversified away by investing in both Under Armour and GAMCO Global 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 GAMCO Global 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 GAMCO Global Gold, you can compare the effects of market volatilities on Under Armour and GAMCO Global 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 GAMCO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and GAMCO Global.
Diversification Opportunities for Under Armour and GAMCO Global
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Under and GAMCO is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and GAMCO Global Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMCO Global Gold 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 GAMCO Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMCO Global Gold has no effect on the direction of Under Armour i.e., Under Armour and GAMCO Global go up and down completely randomly.
Pair Corralation between Under Armour and GAMCO Global
Allowing for the 90-day total investment horizon Under Armour C is expected to generate 4.29 times more return on investment than GAMCO Global. However, Under Armour is 4.29 times more volatile than GAMCO Global Gold. It trades about 0.03 of its potential returns per unit of risk. GAMCO Global Gold is currently generating about 0.04 per unit of risk. If you would invest 797.00 in Under Armour C on September 3, 2024 and sell it today you would earn a total of 116.00 from holding Under Armour C or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.93% |
| Values | Daily Returns |
Under Armour C vs. GAMCO Global Gold
Performance |
| Timeline |
| Under Armour C |
| GAMCO Global Gold |
Under Armour and GAMCO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and GAMCO Global
The main advantage of trading using opposite Under Armour and GAMCO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, GAMCO Global 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 GAMCO Global will offset losses from the drop in GAMCO Global's long position.| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
| GAMCO Global vs. Oxford Lane Capital | GAMCO Global vs. OFS Credit | GAMCO Global vs. XOMA Corporation | GAMCO Global vs. Oxford Lane Capital |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |