Correlation Between American Rebel and Amer Sports,

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

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

Diversification Opportunities for American Rebel and Amer Sports,

-0.6

Correlation Coefficient

American Rebel  Amer Sports,

Excellent diversification

The 3 months correlation between American and Amer is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding American Rebel Holdings and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and American Rebel 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 American Rebel Holdings 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 American Rebel i.e., American Rebel and Amer Sports, go up and down completely randomly.

Pair Corralation between American Rebel and Amer Sports,

Assuming the 90 days horizon American Rebel Holdings is expected to generate 32.39 times more return on investment than Amer Sports,. However, American Rebel is 32.39 times more volatile than Amer Sports,. It trades about 0.13 of its potential returns per unit of risk. Amer Sports, is currently generating about 0.12 per unit of risk. If you would invest  1.53  in American Rebel Holdings on September 26, 2024 and sell it today you would lose (0.48) from holding American Rebel Holdings or give up 31.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	54.83%
Values	Daily Returns

American Rebel Holdings  vs.  Amer Sports,

American Rebel Holdings

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in American Rebel Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental drivers, American Rebel showed solid returns over the last few months and may actually be approaching a breakup point.

Amer Sports,

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Amer Sports, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Rebel and Amer Sports,

The main advantage of trading using opposite American Rebel and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Rebel 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 American Rebel Holdings 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.