Correlation Between Skechers USA and Mercedes Benz
Can any of the company-specific risk be diversified away by investing in both Skechers USA and Mercedes Benz 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 Mercedes Benz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and Mercedes Benz Group, you can compare the effects of market volatilities on Skechers USA and Mercedes Benz 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 Mercedes Benz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Mercedes Benz.
Diversification Opportunities for Skechers USA and Mercedes Benz
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Skechers and Mercedes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA and Mercedes Benz Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercedes Benz Group 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 Mercedes Benz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercedes Benz Group has no effect on the direction of Skechers USA i.e., Skechers USA and Mercedes Benz go up and down completely randomly.
Pair Corralation between Skechers USA and Mercedes Benz
If you would invest 6,132 in Skechers USA on January 31, 2024 and sell it today you would earn a total of 487.00 from holding Skechers USA or generate 7.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Skechers USA vs. Mercedes Benz Group
Performance |
Timeline |
Skechers USA |
Mercedes Benz Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Skechers USA and Mercedes Benz Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Skechers USA and Mercedes Benz
The main advantage of trading using opposite Skechers USA and Mercedes Benz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA position performs unexpectedly, Mercedes Benz 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 Mercedes Benz will offset losses from the drop in Mercedes Benz's long position.The idea behind Skechers USA and Mercedes Benz Group 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.Mercedes Benz vs. Acme United | Mercedes Benz vs. Edgewell Personal Care | Mercedes Benz vs. Cirmaker Technology | Mercedes Benz vs. NETGEAR |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |