Correlation Between Dogness International and Amer Sports,

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

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

Diversification Opportunities for Dogness International and Amer Sports,

-0.74

Correlation Coefficient

Dogness International  Amer Sports,

Pay attention - limited upside

The 3 months correlation between Dogness and Amer is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dogness International Corp and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and Dogness International 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 Dogness International Corp 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 Dogness International i.e., Dogness International and Amer Sports, go up and down completely randomly.

Pair Corralation between Dogness International and Amer Sports,

Given the investment horizon of 90 days Dogness International Corp is expected to under-perform the Amer Sports,. In addition to that, Dogness International is 5.41 times more volatile than Amer Sports,. It trades about -0.02 of its total potential returns per unit of risk. Amer Sports, is currently generating about 0.08 per unit of volatility. If you would invest  2,633  in Amer Sports, on November 28, 2024 and sell it today you would earn a total of  250.00  from holding Amer Sports, or generate 9.49% return on investment over 90 days.

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

Dogness International Corp  vs.  Amer Sports,

Dogness International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dogness International Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Amer Sports,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Amer Sports, may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Dogness International and Amer Sports,

The main advantage of trading using opposite Dogness International and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogness International 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 Dogness International Corp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.