Correlation Between Academy Sports and Smurfit
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By analyzing existing cross correlation between Academy Sports Outdoors and Smurfit Kappa Group, you can compare the effects of market volatilities on Academy Sports and Smurfit 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 Smurfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Smurfit.
Diversification Opportunities for Academy Sports and Smurfit
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Academy and Smurfit is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Smurfit Kappa Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smurfit Kappa Group 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 Smurfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smurfit Kappa Group has no effect on the direction of Academy Sports i.e., Academy Sports and Smurfit go up and down completely randomly.
Pair Corralation between Academy Sports and Smurfit
Considering the 90-day investment horizon Academy Sports Outdoors is expected to generate 20.66 times more return on investment than Smurfit. However, Academy Sports is 20.66 times more volatile than Smurfit Kappa Group. It trades about 0.2 of its potential returns per unit of risk. Smurfit Kappa Group is currently generating about 0.07 per unit of risk. If you would invest 4,929 in Academy Sports Outdoors on September 15, 2024 and sell it today you would earn a total of 502.00 from holding Academy Sports Outdoors or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Academy Sports Outdoors vs. Smurfit Kappa Group
Performance |
| Timeline |
| Academy Sports Outdoors |
| Smurfit Kappa Group |
Academy Sports and Smurfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and Smurfit
The main advantage of trading using opposite Academy Sports and Smurfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports position performs unexpectedly, Smurfit 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 Smurfit will offset losses from the drop in Smurfit's long position.| Academy Sports vs. High Tide | Academy Sports vs. China Jo Jo Drugstores | Academy Sports vs. Walgreens Boots Alliance | Academy Sports vs. 111 Inc |
| Smurfit vs. BJs Restaurants | Smurfit vs. Rave Restaurant Group | Smurfit vs. Funko Inc | Smurfit vs. Academy Sports Outdoors |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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