Correlation Between VF and Hugo Boss
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By analyzing existing cross correlation between VF Corporation and Hugo Boss AG, you can compare the effects of market volatilities on VF 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 VF with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of VF and Hugo Boss.
Diversification Opportunities for VF and Hugo Boss
Modest diversification
The 3 months correlation between VF and Hugo is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding VF Corp. 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 VF 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 VF Corporation 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 VF i.e., VF and Hugo Boss go up and down completely randomly.
Pair Corralation between VF and Hugo Boss
Assuming the 90 days horizon VF Corporation is expected to generate 0.77 times more return on investment than Hugo Boss. However, VF Corporation is 1.31 times less risky than Hugo Boss. It trades about 0.22 of its potential returns per unit of risk. Hugo Boss AG is currently generating about 0.09 per unit of risk. If you would invest 1,894 in VF Corporation on October 26, 2024 and sell it today you would earn a total of 472.00 from holding VF Corporation or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VF Corp. vs. Hugo Boss AG
Performance |
| Timeline |
| VF Corporation |
| Hugo Boss AG |
VF and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VF and Hugo Boss
The main advantage of trading using opposite VF and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VF 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.The idea behind VF Corporation and Hugo Boss AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hugo Boss vs. TITANIUM TRANSPORTGROUP | Hugo Boss vs. SPORT LISBOA E | Hugo Boss vs. NTG Nordic Transport | Hugo Boss vs. Gold Road Resources |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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