Correlation Between FRESNILLO PLC and Under Armour

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both FRESNILLO PLC and Under Armour 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 FRESNILLO PLC and Under Armour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRESNILLO PLC and Under Armour, you can compare the effects of market volatilities on FRESNILLO PLC and Under Armour 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 FRESNILLO PLC with a short position of Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRESNILLO PLC and Under Armour.

Diversification Opportunities for FRESNILLO PLC and Under Armour

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between FRESNILLO and Under is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding FRESNILLO PLC and Under Armour Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour and FRESNILLO PLC 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 FRESNILLO PLC are associated (or correlated) with Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour has no effect on the direction of FRESNILLO PLC i.e., FRESNILLO PLC and Under Armour go up and down completely randomly.

Pair Corralation between FRESNILLO PLC and Under Armour

Assuming the 90 days horizon FRESNILLO PLC is expected to generate 0.86 times more return on investment than Under Armour. However, FRESNILLO PLC is 1.16 times less risky than Under Armour. It trades about 0.01 of its potential returns per unit of risk. Under Armour is currently generating about -0.07 per unit of risk. If you would invest  1,137  in FRESNILLO PLC on September 1, 2022 and sell it today you would lose (72.00)  from holding FRESNILLO PLC or give up 6.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

FRESNILLO PLC  vs.  Under Armour Inc

 Performance (%) 
       Timeline  
FRESNILLO PLC 
FRESNILLO Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in FRESNILLO PLC are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, FRESNILLO PLC exhibited solid returns over the last few months and may actually be approaching a breakup point.

FRESNILLO Price Channel

Under Armour 
Under Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Under Armour are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Under Armour sustained solid returns over the last few months and may actually be approaching a breakup point.

Under Price Channel

FRESNILLO PLC and Under Armour Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FRESNILLO PLC and Under Armour

The main advantage of trading using opposite FRESNILLO PLC and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRESNILLO PLC position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour's long position.
FRESNILLO PLC vs. SAP Ag ADR
The idea behind FRESNILLO PLC and Under Armour 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.
Under Armour vs. Brunswick Corp
Under Armour vs. Dicks Sporting Goods
Under Armour vs. CGI Group
Under Armour vs. Xpo Logistics
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go