Correlation Between Amer Sports, and KIMCO

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

By analyzing existing cross correlation between Amer Sports, and KIMCO RLTY P, you can compare the effects of market volatilities on Amer Sports, and KIMCO 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 KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and KIMCO.

Diversification Opportunities for Amer Sports, and KIMCO

-0.47

Correlation Coefficient

Amer Sports,  KIMCO

Very good diversification

The 3 months correlation between Amer and KIMCO is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P 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 KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of Amer Sports, i.e., Amer Sports, and KIMCO go up and down completely randomly.

Pair Corralation between Amer Sports, and KIMCO

Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 4.52 times more return on investment than KIMCO. However, Amer Sports, is 4.52 times more volatile than KIMCO RLTY P. It trades about 0.12 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about 0.0 per unit of risk. If you would invest  1,340  in Amer Sports, on September 25, 2024 and sell it today you would earn a total of  1,524  from holding Amer Sports, or generate 113.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	51.47%
Values	Daily Returns

Amer Sports,  vs.  KIMCO RLTY P

Amer Sports,

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Amer Sports, unveiled solid returns over the last few months and may actually be approaching a breakup point.

KIMCO RLTY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KIMCO RLTY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KIMCO RLTY P investors.

Pair Trading with Amer Sports, and KIMCO

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

The idea behind Amer Sports, and KIMCO RLTY P 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..