Correlation Between Media and Hugo Boss
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By analyzing existing cross correlation between Media and Games and Hugo Boss AG, you can compare the effects of market volatilities on Media 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 Media with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Hugo Boss.
Diversification Opportunities for Media and Hugo Boss
Good diversification
The 3 months correlation between Media and Hugo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games 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 Media 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 Media and Games 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 Media i.e., Media and Hugo Boss go up and down completely randomly.
Pair Corralation between Media and Hugo Boss
Assuming the 90 days trading horizon Media and Games is expected to under-perform the Hugo Boss. In addition to that, Media is 1.16 times more volatile than Hugo Boss AG. It trades about -0.02 of its total potential returns per unit of risk. Hugo Boss AG is currently generating about 0.07 per unit of volatility. If you would invest 3,997 in Hugo Boss AG on September 26, 2024 and sell it today you would earn a total of 429.00 from holding Hugo Boss AG or generate 10.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Media and Games vs. Hugo Boss AG
Performance |
Timeline |
Media and Games |
Hugo Boss AG |
Media and Hugo Boss Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Media and Hugo Boss
The main advantage of trading using opposite Media and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media 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 Media and Games 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. HM HENMAUUNSPADR 15 | Hugo Boss vs. H M Hennes | Hugo Boss vs. Moncler SpA | Hugo Boss vs. VF Corporation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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