Correlation Between Under Armour and Cabelas

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

Diversification Opportunities for Under Armour and Cabelas

0.0

Correlation Coefficient

Under Armour  Cabelas

Pay attention - limited upside

The 3 months correlation between Under and Cabelas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and Cabelas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabelas 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 Cabelas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabelas has no effect on the direction of Under Armour i.e., Under Armour and Cabelas go up and down completely randomly.

Pair Corralation between Under Armour and Cabelas

If you would invest (100.00) in Cabelas on January 30, 2024 and sell it today you would earn a total of  100.00  from holding Cabelas or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Under Armour C  vs.  Cabelas

Under Armour C

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Under Armour C has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Cabelas

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cabelas has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Cabelas is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Under Armour and Cabelas

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

The idea behind Under Armour C and Cabelas 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.