Correlation Between Adidas AG and ASICS

Can any of the company-specific risk be diversified away by investing in both Adidas AG and ASICS 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 ASICS 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 ASICS, you can compare the effects of market volatilities on Adidas AG and ASICS 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 ASICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adidas AG and ASICS.

Diversification Opportunities for Adidas AG and ASICS

0.73

Correlation Coefficient

Adidas AG  ASICS

Poor diversification

The 3 months correlation between Adidas and ASICS is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Adidas AG ADR and ASICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASICS 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 ASICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASICS has no effect on the direction of Adidas AG i.e., Adidas AG and ASICS go up and down completely randomly.

Pair Corralation between Adidas AG and ASICS

Assuming the 90 days horizon Adidas AG ADR is expected to generate 1.41 times more return on investment than ASICS. However, Adidas AG is 1.41 times more volatile than ASICS. It trades about 0.08 of its potential returns per unit of risk. ASICS is currently generating about 0.09 per unit of risk. If you would invest  9,197  in Adidas AG ADR on September 6, 2025 and sell it today you would earn a total of  229.00  from holding Adidas AG ADR or generate 2.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Adidas AG ADR  vs.  ASICS

Adidas AG ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days Adidas AG ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

ASICS

Risk-Adjusted Performance

Weakest

Over the last 90 days ASICS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Adidas AG and ASICS

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

The idea behind Adidas AG ADR and ASICS 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.