Correlation Between Amer Sports, and Vision Marine

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

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

Diversification Opportunities for Amer Sports, and Vision Marine

-0.74

Correlation Coefficient

Amer Sports,  Vision Marine

Pay attention - limited upside

The 3 months correlation between Amer and Vision is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Vision Marine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vision Marine Techno 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 Vision Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vision Marine Techno has no effect on the direction of Amer Sports, i.e., Amer Sports, and Vision Marine go up and down completely randomly.

Pair Corralation between Amer Sports, and Vision Marine

Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 0.24 times more return on investment than Vision Marine. However, Amer Sports, is 4.22 times less risky than Vision Marine. It trades about 0.11 of its potential returns per unit of risk. Vision Marine Technologies is currently generating about -0.12 per unit of risk. If you would invest  2,633  in Amer Sports, on November 28, 2024 and sell it today you would earn a total of  398.00  from holding Amer Sports, or generate 15.12% return on investment over 90 days.

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

Amer Sports,  vs.  Vision Marine Technologies

Amer Sports,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Amer Sports, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Vision Marine Techno

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Amer Sports, and Vision Marine

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

The idea behind Amer Sports, and Vision Marine Technologies 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.