Correlation Between Under Armour and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both Under Armour and Hugo Boss 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 Hugo Boss 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 Hugo Boss AG, you can compare the effects of market volatilities on Under Armour and Hugo Boss 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 Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and Hugo Boss.
Diversification Opportunities for Under Armour and Hugo Boss
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Under and Hugo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour A and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG 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 Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Under Armour i.e., Under Armour and Hugo Boss go up and down completely randomly.
Pair Corralation between Under Armour and Hugo Boss
Considering the 90-day investment horizon Under Armour A is expected to under-perform the Hugo Boss. But the stock apears to be less risky and, when comparing its historical volatility, Under Armour A is 1.72 times less risky than Hugo Boss. The stock trades about -0.03 of its potential returns per unit of risk. The Hugo Boss AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 857.00 in Hugo Boss AG on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Hugo Boss AG or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Under Armour A vs. Hugo Boss AG
Performance |
| Timeline |
| Under Armour A |
| Hugo Boss AG |
Under Armour and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and Hugo Boss
The main advantage of trading using opposite Under Armour and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| Under Armour vs. Levi Strauss Co | Under Armour vs. Hanesbrands | Under Armour vs. VF Corporation | Under Armour vs. Ralph Lauren Corp |
| Hugo Boss vs. VF Corporation | Hugo Boss vs. Levi Strauss Co | Hugo Boss vs. Under Armour C | Hugo Boss vs. Under Armour A |
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.
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