Correlation Between Academy Sports and Transgene
Can any of the company-specific risk be diversified away by investing in both Academy Sports and Transgene 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 Transgene 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 Transgene SA, you can compare the effects of market volatilities on Academy Sports and Transgene 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 Transgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Transgene.
Diversification Opportunities for Academy Sports and Transgene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Academy and Transgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA 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 Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of Academy Sports i.e., Academy Sports and Transgene go up and down completely randomly.
Pair Corralation between Academy Sports and Transgene
If you would invest 159.00 in Transgene SA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Transgene SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Academy Sports Outdoors vs. Transgene SA
Performance |
| Timeline |
| Academy Sports Outdoors |
| Transgene SA |
Academy Sports and Transgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and Transgene
The main advantage of trading using opposite Academy Sports and Transgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports position performs unexpectedly, Transgene 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 Transgene will offset losses from the drop in Transgene's long position.| Academy Sports vs. Alcon AG | Academy Sports vs. The Cooper Companies, | Academy Sports vs. AngioDynamics | Academy Sports vs. AptarGroup |
| Transgene vs. GEN Restaurant Group, | Transgene vs. Academy Sports Outdoors | Transgene vs. Xponential Fitness | Transgene vs. Sweetgreen |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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