Correlation Between Under Armour and Ree Automotive
Can any of the company-specific risk be diversified away by investing in both Under Armour and Ree Automotive 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 Ree Automotive 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 Ree Automotive Holding, you can compare the effects of market volatilities on Under Armour and Ree Automotive 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 Ree Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and Ree Automotive.
Diversification Opportunities for Under Armour and Ree Automotive
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Under and Ree is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour A and Ree Automotive Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ree Automotive Holding 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 Ree Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ree Automotive Holding has no effect on the direction of Under Armour i.e., Under Armour and Ree Automotive go up and down completely randomly.
Pair Corralation between Under Armour and Ree Automotive
Considering the 90-day investment horizon Under Armour A is expected to generate 0.46 times more return on investment than Ree Automotive. However, Under Armour A is 2.17 times less risky than Ree Automotive. It trades about 0.04 of its potential returns per unit of risk. Ree Automotive Holding is currently generating about 0.02 per unit of risk. If you would invest 743.00 in Under Armour A on September 1, 2024 and sell it today you would earn a total of 228.00 from holding Under Armour A or generate 30.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Under Armour A vs. Ree Automotive Holding
Performance |
| Timeline |
| Under Armour A |
| Ree Automotive Holding |
Under Armour and Ree Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and Ree Automotive
The main advantage of trading using opposite Under Armour and Ree Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, Ree Automotive 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 Ree Automotive will offset losses from the drop in Ree Automotive's long position.| Under Armour vs. VF Corporation | Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Oxford Industries |
| Ree Automotive vs. Twin Vee Powercats | Ree Automotive vs. LCI Industries | Ree Automotive vs. Curtiss Motorcycles | Ree Automotive vs. Marine Products |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |