Correlation Between Lanvin Group and Amer Sports,

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

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

Diversification Opportunities for Lanvin Group and Amer Sports,

-0.2

Correlation Coefficient

Lanvin Group  Amer Sports,

Good diversification

The 3 months correlation between Lanvin and Amer is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Lanvin Group Holdings and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and Lanvin Group 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 Lanvin Group 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 Lanvin Group i.e., Lanvin Group and Amer Sports, go up and down completely randomly.

Pair Corralation between Lanvin Group and Amer Sports,

Given the investment horizon of 90 days Lanvin Group Holdings is expected to generate 2.05 times more return on investment than Amer Sports,. However, Lanvin Group is 2.05 times more volatile than Amer Sports,. It trades about 0.05 of its potential returns per unit of risk. Amer Sports, is currently generating about 0.01 per unit of risk. If you would invest  198.00  in Lanvin Group Holdings on December 27, 2024 and sell it today you would earn a total of  17.00  from holding Lanvin Group Holdings or generate 8.59% return on investment over 90 days.

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

Lanvin Group Holdings  vs.  Amer Sports,

Lanvin Group Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lanvin Group Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Lanvin Group showed solid returns over the last few months and may actually be approaching a breakup point.

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 Lanvin Group and Amer Sports,

The main advantage of trading using opposite Lanvin Group and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanvin Group 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 Lanvin Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.