Correlation Between Skechers USA and MARRIOTT
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By analyzing existing cross correlation between Skechers USA and MARRIOTT INTL INC, you can compare the effects of market volatilities on Skechers USA and MARRIOTT 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 Skechers USA with a short position of MARRIOTT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and MARRIOTT.
Diversification Opportunities for Skechers USA and MARRIOTT
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skechers and MARRIOTT is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and MARRIOTT INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARRIOTT INTL INC and Skechers USA 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 Skechers USA are associated (or correlated) with MARRIOTT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARRIOTT INTL INC has no effect on the direction of Skechers USA i.e., Skechers USA and MARRIOTT go up and down completely randomly.
Pair Corralation between Skechers USA and MARRIOTT
Considering the 90-day investment horizon Skechers USA is expected to generate 3.24 times more return on investment than MARRIOTT. However, Skechers USA is 3.24 times more volatile than MARRIOTT INTL INC. It trades about 0.17 of its potential returns per unit of risk. MARRIOTT INTL INC is currently generating about -0.2 per unit of risk. If you would invest 6,348 in Skechers USA on September 24, 2024 and sell it today you would earn a total of 417.00 from holding Skechers USA or generate 6.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Skechers USA vs. MARRIOTT INTL INC
Performance |
Timeline |
Skechers USA |
MARRIOTT INTL INC |
Skechers USA and MARRIOTT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Skechers USA and MARRIOTT
The main advantage of trading using opposite Skechers USA and MARRIOTT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, MARRIOTT 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 MARRIOTT will offset losses from the drop in MARRIOTT's long position.Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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