Correlation Between Under Armour and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Under Armour and NYSE Composite 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 NYSE Composite 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 NYSE Composite, you can compare the effects of market volatilities on Under Armour and NYSE Composite 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 NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and NYSE Composite.
Diversification Opportunities for Under Armour and NYSE Composite
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Under and NYSE is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Under Armour i.e., Under Armour and NYSE Composite go up and down completely randomly.
Pair Corralation between Under Armour and NYSE Composite
Allowing for the 90-day total investment horizon Under Armour C is expected to generate 4.32 times more return on investment than NYSE Composite. However, Under Armour is 4.32 times more volatile than NYSE Composite. It trades about 0.05 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.02 per unit of risk. If you would invest 861.00 in Under Armour C on September 13, 2024 and sell it today you would earn a total of 15.50 from holding Under Armour C or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Under Armour C vs. NYSE Composite
Performance |
| Timeline |
Under Armour and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Under Armour C
Pair trading matchups for Under Armour
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Under Armour and NYSE Composite
The main advantage of trading using opposite Under Armour and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
| NYSE Composite vs. Boston Beer | NYSE Composite vs. Freedom Bank of | NYSE Composite vs. KeyCorp | NYSE Composite vs. LithiumBank Resources 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |