Correlation Between Albertsons Companies and United States
Can any of the company-specific risk be diversified away by investing in both Albertsons Companies and United States 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 United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albertsons Companies and United States Steel, you can compare the effects of market volatilities on Albertsons Companies and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albertsons Companies and United States.
Diversification Opportunities for Albertsons Companies and United States
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Albertsons and United is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Albertsons Companies i.e., Albertsons Companies and United States go up and down completely randomly.
Pair Corralation between Albertsons Companies and United States
Considering the 90-day investment horizon Albertsons Companies is expected to under-perform the United States. But the stock apears to be less risky and, when comparing its historical volatility, Albertsons Companies is 2.45 times less risky than United States. The stock trades about -0.02 of its potential returns per unit of risk. The United States Steel is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,470 in United States Steel on September 12, 2024 and sell it today you would earn a total of 56.00 from holding United States Steel or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albertsons Companies vs. United States Steel
Performance |
| Timeline |
| Albertsons Companies |
| United States Steel |
Albertsons Companies and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albertsons Companies and United States
The main advantage of trading using opposite Albertsons Companies and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albertsons Companies position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Albertsons Companies vs. Sprouts Farmers Market | Albertsons Companies vs. Krispy Kreme | Albertsons Companies vs. Grocery Outlet Holding | Albertsons Companies vs. Weis Markets |
| United States vs. Nucor Corp | United States vs. Steel Dynamics | United States vs. ArcelorMittal SA ADR | United States vs. Gerdau SA ADR |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |