Correlation Between Under Armour and Twin Vee

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Can any of the company-specific risk be diversified away by investing in both Under Armour and Twin Vee 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 Under Armour and Twin Vee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Under Armour C and Twin Vee Powercats, you can compare the effects of market volatilities on Under Armour and Twin Vee 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 Under Armour with a short position of Twin Vee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and Twin Vee.

Diversification Opportunities for Under Armour and Twin Vee

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Under and Twin is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and Twin Vee Powercats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Twin Vee Powercats and Under Armour 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 Under Armour C are associated (or correlated) with Twin Vee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twin Vee Powercats has no effect on the direction of Under Armour i.e., Under Armour and Twin Vee go up and down completely randomly.

Pair Corralation between Under Armour and Twin Vee

Allowing for the 90-day total investment horizon Under Armour C is expected to generate 0.58 times more return on investment than Twin Vee. However, Under Armour C is 1.74 times less risky than Twin Vee. It trades about 0.04 of its potential returns per unit of risk. Twin Vee Powercats is currently generating about -0.05 per unit of risk. If you would invest  740.00  in Under Armour C on September 23, 2024 and sell it today you would earn a total of  38.00  from holding Under Armour C or generate 5.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Under Armour C  vs.  Twin Vee Powercats

 Performance 
       Timeline  
Under Armour C 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Under Armour C are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Under Armour may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Twin Vee Powercats 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Twin Vee Powercats has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Under Armour and Twin Vee Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Under Armour and Twin Vee

The main advantage of trading using opposite Under Armour and Twin Vee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, Twin Vee 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 Twin Vee will offset losses from the drop in Twin Vee's long position.
The idea behind Under Armour C and Twin Vee Powercats 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 Stocks Directory module to find actively traded stocks across global markets.

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