Correlation Between Gildan Activewear and Amer Sports,
Can any of the company-specific risk be diversified away by investing in both Gildan Activewear 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 Gildan Activewear and Amer Sports, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gildan Activewear and Amer Sports,, you can compare the effects of market volatilities on Gildan Activewear 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 Gildan Activewear with a short position of Amer Sports,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gildan Activewear and Amer Sports,.
Diversification Opportunities for Gildan Activewear and Amer Sports,
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gildan and Amer is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gildan Activewear and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and Gildan Activewear 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 Gildan Activewear 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 Gildan Activewear i.e., Gildan Activewear and Amer Sports, go up and down completely randomly.
Pair Corralation between Gildan Activewear and Amer Sports,
Considering the 90-day investment horizon Gildan Activewear is expected to generate 3.08 times less return on investment than Amer Sports,. But when comparing it to its historical volatility, Gildan Activewear is 1.78 times less risky than Amer Sports,. It trades about 0.07 of its potential returns per unit of risk. Amer Sports, is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,340 in Amer Sports, on September 26, 2024 and sell it today you would earn a total of 1,538 from holding Amer Sports, or generate 114.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 45.77% |
Values | Daily Returns |
Gildan Activewear vs. Amer Sports,
Performance |
Timeline |
Gildan Activewear |
Amer Sports, |
Gildan Activewear and Amer Sports, Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gildan Activewear and Amer Sports,
The main advantage of trading using opposite Gildan Activewear and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gildan Activewear 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.Gildan Activewear vs. Amer Sports, | Gildan Activewear vs. Brunswick | Gildan Activewear vs. BRP Inc | Gildan Activewear vs. Vision Marine Technologies |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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