Correlation Between Canada Goose and Amer Sports,

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

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

Diversification Opportunities for Canada Goose and Amer Sports,

0.58

Correlation Coefficient

Canada Goose  Amer Sports,

Very weak diversification

The 3 months correlation between Canada and Amer is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Canada Goose Holdings and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and Canada Goose 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 Canada Goose Holdings 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 Canada Goose i.e., Canada Goose and Amer Sports, go up and down completely randomly.

Pair Corralation between Canada Goose and Amer Sports,

Given the investment horizon of 90 days Canada Goose Holdings is expected to under-perform the Amer Sports,. In addition to that, Canada Goose is 1.15 times more volatile than Amer Sports,. It trades about -0.07 of its total potential returns per unit of risk. Amer Sports, is currently generating about 0.01 per unit of volatility. If you would invest  2,842  in Amer Sports, on December 27, 2024 and sell it today you would lose (44.00) from holding Amer Sports, or give up 1.55% of portfolio value over 90 days.

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

Canada Goose Holdings  vs.  Amer Sports,

Canada Goose Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canada Goose Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Amer Sports,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amer Sports, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Amer Sports, is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Canada Goose and Amer Sports,

The main advantage of trading using opposite Canada Goose and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Goose 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 Canada Goose Holdings 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.