Correlation Between 49327V2C7 and Skechers USA

Can any of the company-specific risk be diversified away by investing in both 49327V2C7 and Skechers USA 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 49327V2C7 and Skechers USA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KEY 49 08 AUG 32 and Skechers USA, you can compare the effects of market volatilities on 49327V2C7 and Skechers USA 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 49327V2C7 with a short position of Skechers USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of 49327V2C7 and Skechers USA.

Diversification Opportunities for 49327V2C7 and Skechers USA

0.0

Correlation Coefficient

49327V2C7  Skechers USA

Pay attention - limited upside

The 3 months correlation between 49327V2C7 and Skechers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KEY 49 08 AUG 32 and Skechers USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skechers USA and 49327V2C7 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 KEY 49 08 AUG 32 are associated (or correlated) with Skechers USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skechers USA has no effect on the direction of 49327V2C7 i.e., 49327V2C7 and Skechers USA go up and down completely randomly.

Pair Corralation between 49327V2C7 and Skechers USA

If you would invest  6,186  in Skechers USA on October 27, 2024 and sell it today you would earn a total of  1,375  from holding Skechers USA or generate 22.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

KEY 49 08 AUG 32  vs.  Skechers USA

KEY 49 08

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEY 49 08 AUG 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 49327V2C7 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with 49327V2C7 and Skechers USA

The main advantage of trading using opposite 49327V2C7 and Skechers USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49327V2C7 position performs unexpectedly, Skechers USA 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 Skechers USA will offset losses from the drop in Skechers USA's long position.

The idea behind KEY 49 08 AUG 32 and Skechers USA 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.