Correlation Between Hugo Boss and Sumitomo Rubber
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By analyzing existing cross correlation between Hugo Boss AG and Sumitomo Rubber Industries, you can compare the effects of market volatilities on Hugo Boss and Sumitomo Rubber 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 Hugo Boss with a short position of Sumitomo Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hugo Boss and Sumitomo Rubber.
Diversification Opportunities for Hugo Boss and Sumitomo Rubber
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hugo and Sumitomo is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hugo Boss AG and Sumitomo Rubber Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Rubber Indu and Hugo Boss 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 Hugo Boss AG are associated (or correlated) with Sumitomo Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Rubber Indu has no effect on the direction of Hugo Boss i.e., Hugo Boss and Sumitomo Rubber go up and down completely randomly.
Pair Corralation between Hugo Boss and Sumitomo Rubber
Assuming the 90 days trading horizon Hugo Boss AG is expected to generate 3.09 times more return on investment than Sumitomo Rubber. However, Hugo Boss is 3.09 times more volatile than Sumitomo Rubber Industries. It trades about 0.15 of its potential returns per unit of risk. Sumitomo Rubber Industries is currently generating about 0.07 per unit of risk. If you would invest 3,955 in Hugo Boss AG on September 24, 2024 and sell it today you would earn a total of 471.00 from holding Hugo Boss AG or generate 11.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hugo Boss AG vs. Sumitomo Rubber Industries
Performance |
Timeline |
Hugo Boss AG |
Sumitomo Rubber Indu |
Hugo Boss and Sumitomo Rubber Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hugo Boss and Sumitomo Rubber
The main advantage of trading using opposite Hugo Boss and Sumitomo Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hugo Boss position performs unexpectedly, Sumitomo Rubber 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 Sumitomo Rubber will offset losses from the drop in Sumitomo Rubber's long position.Hugo Boss vs. SLR Investment Corp | Hugo Boss vs. SEI INVESTMENTS | Hugo Boss vs. EBRO FOODS | Hugo Boss vs. ECHO INVESTMENT ZY |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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