Correlation Between Amer Sports, and Malibu Boats

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

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

Diversification Opportunities for Amer Sports, and Malibu Boats

0.0

Correlation Coefficient

Amer Sports,  Malibu Boats

Pay attention - limited upside

The 3 months correlation between Amer and Malibu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Malibu Boats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malibu Boats and Amer Sports, 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 Amer Sports, are associated (or correlated) with Malibu Boats. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malibu Boats has no effect on the direction of Amer Sports, i.e., Amer Sports, and Malibu Boats go up and down completely randomly.

Pair Corralation between Amer Sports, and Malibu Boats

Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 1.02 times more return on investment than Malibu Boats. However, Amer Sports, is 1.02 times more volatile than Malibu Boats. It trades about 0.22 of its potential returns per unit of risk. Malibu Boats is currently generating about 0.04 per unit of risk. If you would invest  1,242  in Amer Sports, on September 30, 2024 and sell it today you would earn a total of  1,600  from holding Amer Sports, or generate 128.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Amer Sports,  vs.  Malibu Boats

Amer Sports,

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Amer Sports, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Malibu Boats

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Malibu Boats has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Malibu Boats is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Amer Sports, and Malibu Boats

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

The idea behind Amer Sports, and Malibu Boats 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.