Correlation Between OneSpaWorld Holdings and Amer Sports,

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

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

Diversification Opportunities for OneSpaWorld Holdings and Amer Sports,

0.68

Correlation Coefficient

OneSpaWorld Holdings  Amer Sports,

Poor diversification

The 3 months correlation between OneSpaWorld and Amer is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding OneSpaWorld Holdings and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and OneSpaWorld Holdings 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 OneSpaWorld 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 OneSpaWorld Holdings i.e., OneSpaWorld Holdings and Amer Sports, go up and down completely randomly.

Pair Corralation between OneSpaWorld Holdings and Amer Sports,

Considering the 90-day investment horizon OneSpaWorld Holdings is expected to under-perform the Amer Sports,. But the stock apears to be less risky and, when comparing its historical volatility, OneSpaWorld Holdings is 1.13 times less risky than Amer Sports,. The stock trades about -0.07 of its potential returns per unit of risk. The Amer Sports, is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  2,840  in Amer Sports, on December 29, 2024 and sell it today you would lose (185.00) from holding Amer Sports, or give up 6.51% of portfolio value over 90 days.

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

OneSpaWorld Holdings  vs.  Amer Sports,

OneSpaWorld Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days OneSpaWorld Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated 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 recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with OneSpaWorld Holdings and Amer Sports,

The main advantage of trading using opposite OneSpaWorld Holdings and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpaWorld Holdings 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 OneSpaWorld 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.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.