Correlation Between AMREP and Amer Sports,

Can any of the company-specific risk be diversified away by investing in both AMREP and Amer 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 AMREP and Amer Sports, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AMREP and Amer Sports,, you can compare the effects of market volatilities on AMREP and Amer 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 AMREP with a short position of Amer Sports,. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and Amer Sports,.

Diversification Opportunities for AMREP and Amer Sports,

0.65

Correlation Coefficient

AMREP  Amer Sports,

Poor diversification

The 3 months correlation between AMREP and Amer is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and AMREP 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 AMREP are associated (or correlated) with Amer Sports,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Sports, has no effect on the direction of AMREP i.e., AMREP and Amer Sports, go up and down completely randomly.

Pair Corralation between AMREP and Amer Sports,

Considering the 90-day investment horizon AMREP is expected to under-perform the Amer Sports,. In addition to that, AMREP is 1.95 times more volatile than Amer Sports,. It trades about -0.12 of its total potential returns per unit of risk. Amer Sports, is currently generating about 0.29 per unit of volatility. If you would invest  2,551  in Amer Sports, on September 25, 2024 and sell it today you would earn a total of  327.00  from holding Amer Sports, or generate 12.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

AMREP  vs.  Amer Sports,

AMREP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMREP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, AMREP is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Amer Sports,

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Amer Sports, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AMREP and Amer Sports,

The main advantage of trading using opposite AMREP and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP position performs unexpectedly, Amer 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 Amer Sports, will offset losses from the drop in Amer Sports,'s long position.

The idea behind AMREP and Amer Sports, 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.

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..