Correlation Between Goosehead Insurance and Hugo Boss

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

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

Diversification Opportunities for Goosehead Insurance and Hugo Boss

0.0

Correlation Coefficient

Goosehead Insurance  Hugo Boss

Pay attention - limited upside

The 3 months correlation between Goosehead and Hugo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goosehead Insurance 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 Goosehead Insurance 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 Goosehead Insurance 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 Goosehead Insurance i.e., Goosehead Insurance and Hugo Boss go up and down completely randomly.

Pair Corralation between Goosehead Insurance and Hugo Boss

If you would invest  10,170  in Goosehead Insurance on October 23, 2024 and sell it today you would earn a total of  1,010  from holding Goosehead Insurance or generate 9.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Goosehead Insurance  vs.  Hugo Boss AG

Goosehead Insurance

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Goosehead Insurance are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Goosehead Insurance unveiled solid returns over the last few months and may actually be approaching a breakup point.

Hugo Boss AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hugo Boss AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Hugo Boss is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Goosehead Insurance and Hugo Boss

The main advantage of trading using opposite Goosehead Insurance and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goosehead Insurance 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 Goosehead Insurance 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.

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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.