Correlation Between Academy Sports and Primega Group
Can any of the company-specific risk be diversified away by investing in both Academy Sports and Primega Group 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 Academy Sports and Primega Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Academy Sports Outdoors and Primega Group Holdings, you can compare the effects of market volatilities on Academy Sports and Primega Group 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 Academy Sports with a short position of Primega Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Primega Group.
Diversification Opportunities for Academy Sports and Primega Group
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Academy and Primega is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Primega Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primega Group Holdings and Academy Sports 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 Academy Sports Outdoors are associated (or correlated) with Primega Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primega Group Holdings has no effect on the direction of Academy Sports i.e., Academy Sports and Primega Group go up and down completely randomly.
Pair Corralation between Academy Sports and Primega Group
Considering the 90-day investment horizon Academy Sports is expected to generate 168.61 times less return on investment than Primega Group. But when comparing it to its historical volatility, Academy Sports Outdoors is 45.85 times less risky than Primega Group. It trades about 0.03 of its potential returns per unit of risk. Primega Group Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 510.00 in Primega Group Holdings on September 4, 2024 and sell it today you would lose (302.00) from holding Primega Group Holdings or give up 59.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Academy Sports Outdoors vs. Primega Group Holdings
Performance |
| Timeline |
| Academy Sports Outdoors |
| Primega Group Holdings |
Academy Sports and Primega Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and Primega Group
The main advantage of trading using opposite Academy Sports and Primega Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports position performs unexpectedly, Primega Group 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 Primega Group will offset losses from the drop in Primega Group's long position.| Academy Sports vs. Williams Sonoma | Academy Sports vs. AutoZone | Academy Sports vs. Ulta Beauty | Academy Sports vs. Best Buy Co |
| Primega Group vs. Siriuspoint | Primega Group vs. United Fire Group | Primega Group vs. Southwest Airlines | Primega Group vs. Delta Air Lines |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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