Correlation Between Under Armour and Fossil
Can any of the company-specific risk be diversified away by investing in both Under Armour and Fossil 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 Fossil 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 Fossil Group, you can compare the effects of market volatilities on Under Armour and Fossil 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 Fossil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and Fossil.
Diversification Opportunities for Under Armour and Fossil
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Under and Fossil is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and Fossil Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fossil Group 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 Fossil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fossil Group has no effect on the direction of Under Armour i.e., Under Armour and Fossil go up and down completely randomly.
Pair Corralation between Under Armour and Fossil
Allowing for the 90-day total investment horizon Under Armour C is expected to under-perform the Fossil. But the stock apears to be less risky and, when comparing its historical volatility, Under Armour C is 1.97 times less risky than Fossil. The stock trades about -0.1 of its potential returns per unit of risk. The Fossil Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 149.00 in Fossil Group on May 29, 2025 and sell it today you would earn a total of 149.00 from holding Fossil Group or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Under Armour C vs. Fossil Group
Performance |
| Timeline |
| Under Armour C |
| Fossil Group |
Under Armour and Fossil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and Fossil
The main advantage of trading using opposite Under Armour and Fossil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour position performs unexpectedly, Fossil 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 Fossil will offset losses from the drop in Fossil's long position.| Under Armour vs. Chipotle Mexican Grill | Under Armour vs. GoPro Inc | Under Armour vs. Hanesbrands | Under Armour vs. Levi Strauss Co |
| Fossil vs. VF Corporation | Fossil vs. Levi Strauss Co | Fossil vs. Under Armour A | Fossil vs. Columbia Sportswear |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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