Correlation Between ABO-GROUP ENVIRONMENT and SPARTAN STORES
Can any of the company-specific risk be diversified away by investing in both ABO-GROUP ENVIRONMENT and SPARTAN STORES 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 ABO-GROUP ENVIRONMENT and SPARTAN STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABO GROUP ENVIRONMENT and SPARTAN STORES, you can compare the effects of market volatilities on ABO-GROUP ENVIRONMENT and SPARTAN STORES 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 ABO-GROUP ENVIRONMENT with a short position of SPARTAN STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABO-GROUP ENVIRONMENT and SPARTAN STORES.
Diversification Opportunities for ABO-GROUP ENVIRONMENT and SPARTAN STORES
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABO-GROUP and SPARTAN is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ABO GROUP ENVIRONMENT and SPARTAN STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPARTAN STORES and ABO-GROUP ENVIRONMENT 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 ABO GROUP ENVIRONMENT are associated (or correlated) with SPARTAN STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPARTAN STORES has no effect on the direction of ABO-GROUP ENVIRONMENT i.e., ABO-GROUP ENVIRONMENT and SPARTAN STORES go up and down completely randomly.
Pair Corralation between ABO-GROUP ENVIRONMENT and SPARTAN STORES
Assuming the 90 days trading horizon ABO GROUP ENVIRONMENT is expected to under-perform the SPARTAN STORES. But the stock apears to be less risky and, when comparing its historical volatility, ABO GROUP ENVIRONMENT is 2.93 times less risky than SPARTAN STORES. The stock trades about -0.38 of its potential returns per unit of risk. The SPARTAN STORES is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,690 in SPARTAN STORES on November 28, 2024 and sell it today you would earn a total of 180.00 from holding SPARTAN STORES or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABO GROUP ENVIRONMENT vs. SPARTAN STORES
Performance |
| Timeline |
| ABO GROUP ENVIRONMENT |
| SPARTAN STORES |
ABO-GROUP ENVIRONMENT and SPARTAN STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABO-GROUP ENVIRONMENT and SPARTAN STORES
The main advantage of trading using opposite ABO-GROUP ENVIRONMENT and SPARTAN STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABO-GROUP ENVIRONMENT position performs unexpectedly, SPARTAN STORES 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 SPARTAN STORES will offset losses from the drop in SPARTAN STORES's long position.| ABO-GROUP ENVIRONMENT vs. PLAYMATES HLDGS NEW | ABO-GROUP ENVIRONMENT vs. Luckin Coffee | ABO-GROUP ENVIRONMENT vs. PLAYWAY SA ZY 10 | ABO-GROUP ENVIRONMENT vs. Chesapeake Utilities |
| SPARTAN STORES vs. Platinum Investment Management | SPARTAN STORES vs. Guangdong Investment Limited | SPARTAN STORES vs. RCS Mediagroup SpA | SPARTAN STORES vs. Fuji Media Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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