Correlation Between Amer Sports, and SIGNA Sports
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and SIGNA Sports 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 Amer Sports, and SIGNA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and SIGNA Sports United, you can compare the effects of market volatilities on Amer Sports, and SIGNA Sports 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 Amer Sports, with a short position of SIGNA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and SIGNA Sports.
Diversification Opportunities for Amer Sports, and SIGNA Sports
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amer and SIGNA is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and SIGNA Sports United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIGNA Sports United and Amer Sports, 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 Amer Sports, are associated (or correlated) with SIGNA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIGNA Sports United has no effect on the direction of Amer Sports, i.e., Amer Sports, and SIGNA Sports go up and down completely randomly.
Pair Corralation between Amer Sports, and SIGNA Sports
If you would invest 2,551 in Amer Sports, on September 25, 2024 and sell it today you would earn a total of 267.00 from holding Amer Sports, or generate 10.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 5.0% |
Values | Daily Returns |
Amer Sports, vs. SIGNA Sports United
Performance |
Timeline |
Amer Sports, |
SIGNA Sports United |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amer Sports, and SIGNA Sports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amer Sports, and SIGNA Sports
The main advantage of trading using opposite Amer Sports, and SIGNA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, SIGNA Sports 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 SIGNA Sports will offset losses from the drop in SIGNA Sports' long position.Amer Sports, vs. AMREP | Amer Sports, vs. Franklin Street Properties | Amer Sports, vs. Pearson PLC ADR | Amer Sports, vs. John Wiley Sons |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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