Correlation Between Skechers USA and Greenvale Mining

Can any of the company-specific risk be diversified away by investing in both Skechers USA and Greenvale Mining 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 Skechers USA and Greenvale Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Skechers USA and Greenvale Mining Limited, you can compare the effects of market volatilities on Skechers USA and Greenvale Mining 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 Skechers USA with a short position of Greenvale Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Greenvale Mining.

Diversification Opportunities for Skechers USA and Greenvale Mining

0.0

Correlation Coefficient

Skechers USA  Greenvale Mining

Pay attention - limited upside

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

Pair Corralation between Skechers USA and Greenvale Mining

If you would invest  6,792  in Skechers USA on October 27, 2024 and sell it today you would earn a total of  769.00  from holding Skechers USA or generate 11.32% return on investment over 90 days.

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

Skechers USA  vs.  Greenvale Mining Limited

Skechers USA

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Skechers USA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward-looking signals, Skechers USA showed solid returns over the last few months and may actually be approaching a breakup point.

Greenvale Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greenvale Mining Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Greenvale Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Skechers USA and Greenvale Mining

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

The idea behind Skechers USA and Greenvale Mining Limited 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.