Correlation Between Under Armour and CARRIER
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By analyzing existing cross correlation between Under Armour C and CARRIER GLOBAL P, you can compare the effects of market volatilities on Under Armour and CARRIER 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 CARRIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and CARRIER.
Diversification Opportunities for Under Armour and CARRIER
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Under and CARRIER is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and CARRIER GLOBAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARRIER GLOBAL P 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 CARRIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARRIER GLOBAL P has no effect on the direction of Under Armour i.e., Under Armour and CARRIER go up and down completely randomly.
Pair Corralation between Under Armour and CARRIER
Allowing for the 90-day total investment horizon Under Armour C is expected to generate 4.47 times more return on investment than CARRIER. However, Under Armour is 4.47 times more volatile than CARRIER GLOBAL P. It trades about 0.13 of its potential returns per unit of risk. CARRIER GLOBAL P is currently generating about -0.03 per unit of risk. If you would invest 689.00 in Under Armour C on September 12, 2024 and sell it today you would earn a total of 229.00 from holding Under Armour C or generate 33.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Under Armour C vs. CARRIER GLOBAL P
Performance |
| Timeline |
| Under Armour C |
| CARRIER GLOBAL P |
Under Armour and CARRIER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and CARRIER
The main advantage of trading using opposite Under Armour and CARRIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, CARRIER 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 CARRIER will offset losses from the drop in CARRIER's long position.| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
| CARRIER vs. Eltek | CARRIER vs. Bright Scholar Education | CARRIER vs. 51Talk Online Education | CARRIER vs. Coda Octopus Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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