Correlation Between Albertsons Companies and CINCINNATI
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By analyzing existing cross correlation between Albertsons Companies and CINCINNATI FINL P, you can compare the effects of market volatilities on Albertsons Companies and CINCINNATI 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 CINCINNATI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albertsons Companies and CINCINNATI.
Diversification Opportunities for Albertsons Companies and CINCINNATI
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Albertsons and CINCINNATI is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and CINCINNATI FINL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CINCINNATI FINL P 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 CINCINNATI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CINCINNATI FINL P has no effect on the direction of Albertsons Companies i.e., Albertsons Companies and CINCINNATI go up and down completely randomly.
Pair Corralation between Albertsons Companies and CINCINNATI
Considering the 90-day investment horizon Albertsons Companies is expected to generate 1.69 times more return on investment than CINCINNATI. However, Albertsons Companies is 1.69 times more volatile than CINCINNATI FINL P. It trades about 0.22 of its potential returns per unit of risk. CINCINNATI FINL P is currently generating about 0.23 per unit of risk. If you would invest 1,845 in Albertsons Companies on September 4, 2024 and sell it today you would earn a total of 100.00 from holding Albertsons Companies or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Albertsons Companies vs. CINCINNATI FINL P
Performance |
| Timeline |
| Albertsons Companies |
| CINCINNATI FINL P |
Albertsons Companies and CINCINNATI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albertsons Companies and CINCINNATI
The main advantage of trading using opposite Albertsons Companies and CINCINNATI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albertsons Companies position performs unexpectedly, CINCINNATI 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 CINCINNATI will offset losses from the drop in CINCINNATI'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 |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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