Correlation Between Moncler SpA and Triumph Apparel

Can any of the company-specific risk be diversified away by investing in both Moncler SpA and Triumph Apparel 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 Moncler SpA and Triumph Apparel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Moncler SpA and Triumph Apparel, you can compare the effects of market volatilities on Moncler SpA and Triumph Apparel 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 Moncler SpA with a short position of Triumph Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moncler SpA and Triumph Apparel.

Diversification Opportunities for Moncler SpA and Triumph Apparel

0.0

Correlation Coefficient

Moncler SpA  Triumph Apparel

Pay attention - limited upside

The 3 months correlation between Moncler and Triumph is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Moncler SpA and Triumph Apparel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Apparel and Moncler SpA 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 Moncler SpA are associated (or correlated) with Triumph Apparel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Apparel has no effect on the direction of Moncler SpA i.e., Moncler SpA and Triumph Apparel go up and down completely randomly.

Pair Corralation between Moncler SpA and Triumph Apparel

If you would invest  5,279  in Moncler SpA on December 22, 2024 and sell it today you would earn a total of  1,307  from holding Moncler SpA or generate 24.76% return on investment over 90 days.

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

Moncler SpA  vs.  Triumph Apparel

Moncler SpA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moncler SpA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Moncler SpA showed solid returns over the last few months and may actually be approaching a breakup point.

Triumph Apparel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Triumph Apparel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Triumph Apparel is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Moncler SpA and Triumph Apparel

The main advantage of trading using opposite Moncler SpA and Triumph Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moncler SpA position performs unexpectedly, Triumph Apparel 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 Triumph Apparel will offset losses from the drop in Triumph Apparel's long position.

The idea behind Moncler SpA and Triumph Apparel 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.