Correlation Between Under Armour and Richtech Robotics

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

By analyzing existing cross correlation between Under Armour C and Richtech Robotics Class, you can compare the effects of market volatilities on Under Armour and Richtech Robotics 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 Under Armour with a short position of Richtech Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and Richtech Robotics.

Diversification Opportunities for Under Armour and Richtech Robotics

-0.62

Correlation Coefficient

Under Armour  Richtech Robotics

Excellent diversification

The 3 months correlation between Under and Richtech is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and Richtech Robotics Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Richtech Robotics Class and Under Armour 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 Under Armour C are associated (or correlated) with Richtech Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Richtech Robotics Class has no effect on the direction of Under Armour i.e., Under Armour and Richtech Robotics go up and down completely randomly.

Pair Corralation between Under Armour and Richtech Robotics

Allowing for the 90-day total investment horizon Under Armour is expected to generate 1.49 times less return on investment than Richtech Robotics. In addition to that, Under Armour is 1.06 times more volatile than Richtech Robotics Class. It trades about 0.11 of its total potential returns per unit of risk. Richtech Robotics Class is currently generating about 0.17 per unit of volatility. If you would invest  62.00  in Richtech Robotics Class on September 2, 2024 and sell it today you would earn a total of  12.00  from holding Richtech Robotics Class or generate 19.35% return on investment over 90 days.

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

Under Armour C  vs.  Richtech Robotics Class

Under Armour C

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Under Armour C are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Under Armour sustained solid returns over the last few months and may actually be approaching a breakup point.

Richtech Robotics Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Richtech Robotics Class has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Under Armour and Richtech Robotics

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

The idea behind Under Armour C and Richtech Robotics Class 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.