Correlation Between Skechers USA and Acorn International
Can any of the company-specific risk be diversified away by investing in both Skechers USA and Acorn International 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 Acorn International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and Acorn International, you can compare the effects of market volatilities on Skechers USA and Acorn International 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 Acorn International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Acorn International.
Diversification Opportunities for Skechers USA and Acorn International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Skechers and Acorn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and Acorn International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorn International 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 Acorn International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorn International has no effect on the direction of Skechers USA i.e., Skechers USA and Acorn International go up and down completely randomly.
Pair Corralation between Skechers USA and Acorn International
If you would invest 6,026 in Skechers USA on February 8, 2024 and sell it today you would earn a total of 614.00 from holding Skechers USA or generate 10.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Skechers USA vs. Acorn International
Performance |
Timeline |
Skechers USA |
Acorn International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Skechers USA and Acorn International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Skechers USA and Acorn International
The main advantage of trading using opposite Skechers USA and Acorn International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, Acorn International 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 Acorn International will offset losses from the drop in Acorn International's long position.The idea behind Skechers USA and Acorn International 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.Acorn International vs. JJill Inc | Acorn International vs. Skechers USA | Acorn International vs. FMC Corporation | Acorn International vs. Boot Barn Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |