Correlation Between American Transportation and SIGNA Sports
Can any of the company-specific risk be diversified away by investing in both American Transportation and SIGNA Sports 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 American Transportation and SIGNA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Transportation Holdings and SIGNA Sports United, you can compare the effects of market volatilities on American Transportation and SIGNA Sports 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 American Transportation with a short position of SIGNA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Transportation and SIGNA Sports.
Diversification Opportunities for American Transportation and SIGNA Sports
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between American and SIGNA is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding American Transportation Holdin and SIGNA Sports United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIGNA Sports United and American Transportation 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 American Transportation Holdings are associated (or correlated) with SIGNA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIGNA Sports United has no effect on the direction of American Transportation i.e., American Transportation and SIGNA Sports go up and down completely randomly.
Pair Corralation between American Transportation and SIGNA Sports
If you would invest 1.00 in American Transportation Holdings on September 11, 2025 and sell it today you would earn a total of 0.00 from holding American Transportation Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.88% |
| Values | Daily Returns |
American Transportation Holdin vs. SIGNA Sports United
Performance |
| Timeline |
| American Transportation |
| SIGNA Sports United |
American Transportation and SIGNA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Transportation and SIGNA Sports
The main advantage of trading using opposite American Transportation and SIGNA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Transportation position performs unexpectedly, SIGNA Sports 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 SIGNA Sports will offset losses from the drop in SIGNA Sports' long position.The idea behind American Transportation Holdings and SIGNA Sports United 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.| SIGNA Sports vs. Yuka Group | SIGNA Sports vs. Gourmet Provisions International | SIGNA Sports vs. Sunstock | SIGNA Sports vs. Diamant Art Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |