Correlation Between Albertsons Companies and Global Net
Can any of the company-specific risk be diversified away by investing in both Albertsons Companies and Global Net 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 Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albertsons Companies and Global Net Lease, you can compare the effects of market volatilities on Albertsons Companies and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albertsons Companies and Global Net.
Diversification Opportunities for Albertsons Companies and Global Net
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Albertsons and Global is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Albertsons Companies i.e., Albertsons Companies and Global Net go up and down completely randomly.
Pair Corralation between Albertsons Companies and Global Net
Considering the 90-day investment horizon Albertsons Companies is expected to generate 26.02 times less return on investment than Global Net. But when comparing it to its historical volatility, Albertsons Companies is 1.19 times less risky than Global Net. It trades about 0.0 of its potential returns per unit of risk. Global Net Lease is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,255 in Global Net Lease on October 25, 2024 and sell it today you would earn a total of 55.00 from holding Global Net Lease or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albertsons Companies vs. Global Net Lease
Performance |
| Timeline |
| Albertsons Companies |
| Global Net Lease |
Albertsons Companies and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albertsons Companies and Global Net
The main advantage of trading using opposite Albertsons Companies and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albertsons Companies position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Albertsons Companies vs. Sprouts Farmers Market | Albertsons Companies vs. Krispy Kreme | Albertsons Companies vs. Grocery Outlet Holding | Albertsons Companies vs. Weis Markets |
| Global Net vs. Sphere Entertainment Co | Global Net vs. MOGU Inc | Global Net vs. Albertsons Companies | Global Net vs. Contextlogic |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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