Correlation Between East Africa and Amer Sports,

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Can any of the company-specific risk be diversified away by investing in both East Africa 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 East Africa and Amer Sports, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Africa Metals and Amer Sports,, you can compare the effects of market volatilities on East Africa 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 East Africa with a short position of Amer Sports,. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Africa and Amer Sports,.

Diversification Opportunities for East Africa and Amer Sports,

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between East and Amer is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding East Africa Metals and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and East Africa 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 East Africa Metals 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 East Africa i.e., East Africa and Amer Sports, go up and down completely randomly.

Pair Corralation between East Africa and Amer Sports,

Assuming the 90 days horizon East Africa Metals is expected to under-perform the Amer Sports,. In addition to that, East Africa is 1.01 times more volatile than Amer Sports,. It trades about -0.12 of its total potential returns per unit of risk. Amer Sports, is currently generating about 0.26 per unit of volatility. If you would invest  1,135  in Amer Sports, on October 4, 2024 and sell it today you would earn a total of  1,752  from holding Amer Sports, or generate 154.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.21%
ValuesDaily Returns

East Africa Metals  vs.  Amer Sports,

 Performance 
       Timeline  
East Africa Metals 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days East Africa Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's primary indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Amer Sports, 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Amer Sports, unveiled solid returns over the last few months and may actually be approaching a breakup point.

East Africa and Amer Sports, Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with East Africa and Amer Sports,

The main advantage of trading using opposite East Africa and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Africa 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 East Africa Metals 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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