Correlation Between Under Armour and American Rebel
Can any of the company-specific risk be diversified away by investing in both Under Armour and American Rebel 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 American Rebel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Under Armour A and American Rebel Holdings, you can compare the effects of market volatilities on Under Armour and American Rebel 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 American Rebel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and American Rebel.
Diversification Opportunities for Under Armour and American Rebel
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Under and American is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour A and American Rebel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Rebel Holdings 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 A are associated (or correlated) with American Rebel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Rebel Holdings has no effect on the direction of Under Armour i.e., Under Armour and American Rebel go up and down completely randomly.
Pair Corralation between Under Armour and American Rebel
Considering the 90-day investment horizon Under Armour is expected to generate 130.22 times less return on investment than American Rebel. But when comparing it to its historical volatility, Under Armour A is 37.48 times less risky than American Rebel. It trades about 0.04 of its potential returns per unit of risk. American Rebel Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.73 in American Rebel Holdings on September 1, 2024 and sell it today you would lose (0.91) from holding American Rebel Holdings or give up 52.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.06% |
| Values | Daily Returns |
Under Armour A vs. American Rebel Holdings
Performance |
| Timeline |
| Under Armour A |
| American Rebel Holdings |
Under Armour and American Rebel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and American Rebel
The main advantage of trading using opposite Under Armour and American Rebel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, American Rebel 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 American Rebel will offset losses from the drop in American Rebel's long position.| Under Armour vs. VF Corporation | Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Oxford Industries |
| American Rebel vs. Weibo Corp | American Rebel vs. Timken Company | American Rebel vs. Weyco Group | American Rebel vs. Western Asset Investment |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Transaction History View history of all your transactions and understand their impact on performance |