Correlation Between Skechers USA and ANZNZ

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

By analyzing existing cross correlation between Skechers USA and ANZNZ 125 22 JUN 26, you can compare the effects of market volatilities on Skechers USA and ANZNZ 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 ANZNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and ANZNZ.

Diversification Opportunities for Skechers USA and ANZNZ

0.77

Correlation Coefficient

Skechers USA  ANZNZ

Poor diversification

The 3 months correlation between Skechers and ANZNZ is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and ANZNZ 125 22 JUN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZNZ 125 22 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 ANZNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZNZ 125 22 has no effect on the direction of Skechers USA i.e., Skechers USA and ANZNZ go up and down completely randomly.

Pair Corralation between Skechers USA and ANZNZ

Considering the 90-day investment horizon Skechers USA is expected to generate 4.58 times more return on investment than ANZNZ. However, Skechers USA is 4.58 times more volatile than ANZNZ 125 22 JUN 26. It trades about 0.05 of its potential returns per unit of risk. ANZNZ 125 22 JUN 26 is currently generating about 0.03 per unit of risk. If you would invest  4,588  in Skechers USA on October 10, 2024 and sell it today you would earn a total of  2,402  from holding Skechers USA or generate 52.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	41.62%
Values	Daily Returns

Skechers USA  vs.  ANZNZ 125 22 JUN 26

Skechers USA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Skechers USA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong forward-looking signals, Skechers USA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ANZNZ 125 22

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANZNZ 125 22 JUN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ANZNZ 125 22 JUN 26 investors.

Pair Trading with Skechers USA and ANZNZ

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

The idea behind Skechers USA and ANZNZ 125 22 JUN 26 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 Stocks Directory module to find actively traded stocks across global markets.