Correlation Between Adidas AG and Samsonite International
Can any of the company-specific risk be diversified away by investing in both Adidas AG and Samsonite 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 Adidas AG and Samsonite International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adidas AG ADR and Samsonite International SA, you can compare the effects of market volatilities on Adidas AG and Samsonite 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 Adidas AG with a short position of Samsonite International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adidas AG and Samsonite International.
Diversification Opportunities for Adidas AG and Samsonite International
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Adidas and Samsonite is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Adidas AG ADR and Samsonite International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsonite International and Adidas AG 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 Adidas AG ADR are associated (or correlated) with Samsonite International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsonite International has no effect on the direction of Adidas AG i.e., Adidas AG and Samsonite International go up and down completely randomly.
Pair Corralation between Adidas AG and Samsonite International
Assuming the 90 days horizon Adidas AG ADR is expected to generate 0.59 times more return on investment than Samsonite International. However, Adidas AG ADR is 1.71 times less risky than Samsonite International. It trades about 0.23 of its potential returns per unit of risk. Samsonite International SA is currently generating about 0.07 per unit of risk. If you would invest 9,778 in Adidas AG ADR on February 19, 2024 and sell it today you would earn a total of 2,679 from holding Adidas AG ADR or generate 27.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Adidas AG ADR vs. Samsonite International SA
Performance |
Timeline |
Adidas AG ADR |
Samsonite International |
Adidas AG and Samsonite International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Adidas AG and Samsonite International
The main advantage of trading using opposite Adidas AG and Samsonite International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adidas AG position performs unexpectedly, Samsonite 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 Samsonite International will offset losses from the drop in Samsonite International's long position.Adidas AG vs. American Rebel Holdings | Adidas AG vs. Dr Martens plc | Adidas AG vs. American Rebel Holdings | Adidas AG vs. Forward Industries |
Samsonite International vs. American Rebel Holdings | Samsonite International vs. Dr Martens plc | Samsonite International vs. American Rebel Holdings | Samsonite International vs. Forward Industries |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Transaction History View history of all your transactions and understand their impact on performance | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
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 | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |