Correlation Between Ralph Lauren and Strong Global

Can any of the company-specific risk be diversified away by investing in both Ralph Lauren and Strong Global 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 Ralph Lauren and Strong Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ralph Lauren Corp and Strong Global Entertainment,, you can compare the effects of market volatilities on Ralph Lauren and Strong Global 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 Ralph Lauren with a short position of Strong Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ralph Lauren and Strong Global.

Diversification Opportunities for Ralph Lauren and Strong Global

0.0

Correlation Coefficient

Ralph Lauren  Strong Global

Pay attention - limited upside

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

Pair Corralation between Ralph Lauren and Strong Global

If you would invest (100.00) in Strong Global Entertainment, on December 17, 2024 and sell it today you would earn a total of  100.00  from holding Strong Global Entertainment, or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ralph Lauren Corp  vs.  Strong Global Entertainment,

Ralph Lauren Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ralph Lauren Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Ralph Lauren is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Strong Global Entert

Risk-Adjusted Performance

Very Weak

Over the last 90 days Strong Global Entertainment, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Strong Global is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ralph Lauren and Strong Global

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

The idea behind Ralph Lauren Corp and Strong Global Entertainment, 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.