Correlation Between Juventus Football and Peloton Interactive
Can any of the company-specific risk be diversified away by investing in both Juventus Football and Peloton Interactive 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 Juventus Football and Peloton Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juventus Football Club and Peloton Interactive, you can compare the effects of market volatilities on Juventus Football and Peloton Interactive 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 Juventus Football with a short position of Peloton Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juventus Football and Peloton Interactive.
Diversification Opportunities for Juventus Football and Peloton Interactive
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juventus and Peloton is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Juventus Football Club and Peloton Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peloton Interactive and Juventus Football 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 Juventus Football Club are associated (or correlated) with Peloton Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peloton Interactive has no effect on the direction of Juventus Football i.e., Juventus Football and Peloton Interactive go up and down completely randomly.
Pair Corralation between Juventus Football and Peloton Interactive
Assuming the 90 days horizon Juventus Football Club is expected to generate 1.64 times more return on investment than Peloton Interactive. However, Juventus Football is 1.64 times more volatile than Peloton Interactive. It trades about -0.15 of its potential returns per unit of risk. Peloton Interactive is currently generating about -0.42 per unit of risk. If you would invest 226.00 in Juventus Football Club on January 20, 2024 and sell it today you would lose (51.00) from holding Juventus Football Club or give up 22.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juventus Football Club vs. Peloton Interactive
Performance |
| Timeline |
| Juventus Football Club |
| Peloton Interactive |
Juventus Football and Peloton Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juventus Football and Peloton Interactive
The main advantage of trading using opposite Juventus Football and Peloton Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juventus Football position performs unexpectedly, Peloton Interactive 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 Peloton Interactive will offset losses from the drop in Peloton Interactive's long position.| Juventus Football vs. Roku Inc | Juventus Football vs. Hall of Fame | Juventus Football vs. Color Star Technology | Juventus Football vs. LiveOne |
| Peloton Interactive vs. Thor Industries | Peloton Interactive vs. EZGO Technologies | Peloton Interactive vs. LCI Industries | Peloton Interactive vs. Winnebago 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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