Correlation Between Samsonite International and Puma SE

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

By analyzing existing cross correlation between Samsonite International SA and Puma SE, you can compare the effects of market volatilities on Samsonite International and Puma SE 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 Samsonite International with a short position of Puma SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsonite International and Puma SE.

Diversification Opportunities for Samsonite International and Puma SE

0.46

Correlation Coefficient

Samsonite International  Puma SE

Very weak diversification

The 3 months correlation between Samsonite and Puma is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Samsonite International SA and Puma SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma SE and Samsonite International 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 Samsonite International SA are associated (or correlated) with Puma SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma SE has no effect on the direction of Samsonite International i.e., Samsonite International and Puma SE go up and down completely randomly.

Pair Corralation between Samsonite International and Puma SE

Assuming the 90 days horizon Samsonite International SA is expected to generate 0.39 times more return on investment than Puma SE. However, Samsonite International SA is 2.55 times less risky than Puma SE. It trades about -0.12 of its potential returns per unit of risk. Puma SE is currently generating about -0.18 per unit of risk. If you would invest  1,359  in Samsonite International SA on December 29, 2024 and sell it today you would lose (183.00) from holding Samsonite International SA or give up 13.47% of portfolio value over 90 days.

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

Samsonite International SA  vs.  Puma SE

Samsonite International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samsonite International SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Puma SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days Puma SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Samsonite International and Puma SE

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

The idea behind Samsonite International SA and Puma SE 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.

Check out your portfolio center.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.