Correlation Between HWH International and Amer Sports,

Can any of the company-specific risk be diversified away by investing in both HWH 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 HWH 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 HWH International and Amer Sports,, you can compare the effects of market volatilities on HWH 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 HWH International with a short position of Amer Sports,. Check out your portfolio center. Please also check ongoing floating volatility patterns of HWH International and Amer Sports,.

Diversification Opportunities for HWH International and Amer Sports,

-0.23

Correlation Coefficient

HWH International  Amer Sports,

Very good diversification

The 3 months correlation between HWH and Amer is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding HWH International and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and HWH 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 HWH International 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 HWH International i.e., HWH International and Amer Sports, go up and down completely randomly.

Pair Corralation between HWH International and Amer Sports,

Considering the 90-day investment horizon HWH International is expected to generate 4.63 times more return on investment than Amer Sports,. However, HWH International is 4.63 times more volatile than Amer Sports,. It trades about 0.01 of its potential returns per unit of risk. Amer Sports, is currently generating about 0.02 per unit of risk. If you would invest  218.00  in HWH International on December 22, 2024 and sell it today you would lose (60.00) from holding HWH International or give up 27.52% of portfolio value over 90 days.

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

HWH International  vs.  Amer Sports,

HWH International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HWH International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, HWH International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Amer Sports,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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 HWH International and Amer Sports,

The main advantage of trading using opposite HWH International and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HWH 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 HWH International 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.