Correlation Between Albertsons Companies and Enerplus
Can any of the company-specific risk be diversified away by investing in both Albertsons Companies and Enerplus 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 Albertsons Companies and Enerplus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albertsons Companies and Enerplus, you can compare the effects of market volatilities on Albertsons Companies and Enerplus 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 Albertsons Companies with a short position of Enerplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albertsons Companies and Enerplus.
Diversification Opportunities for Albertsons Companies and Enerplus
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Albertsons and Enerplus is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and Enerplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerplus and Albertsons Companies 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 Albertsons Companies are associated (or correlated) with Enerplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerplus has no effect on the direction of Albertsons Companies i.e., Albertsons Companies and Enerplus go up and down completely randomly.
Pair Corralation between Albertsons Companies and Enerplus
If you would invest 1,801 in Albertsons Companies on August 30, 2024 and sell it today you would earn a total of 161.00 from holding Albertsons Companies or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Albertsons Companies vs. Enerplus
Performance |
| Timeline |
| Albertsons Companies |
| Enerplus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Albertsons Companies and Enerplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albertsons Companies and Enerplus
The main advantage of trading using opposite Albertsons Companies and Enerplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albertsons Companies position performs unexpectedly, Enerplus 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 Enerplus will offset losses from the drop in Enerplus' long position.| Albertsons Companies vs. Sprouts Farmers Market | Albertsons Companies vs. Krispy Kreme | Albertsons Companies vs. Grocery Outlet Holding | Albertsons Companies vs. Weis Markets |
| Enerplus vs. Vermilion Energy | Enerplus vs. Canadian Natural Resources | Enerplus vs. Baytex Energy Corp | Enerplus vs. Obsidian Energy |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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