Correlation Between Academy Sports and WISCONSIN
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By analyzing existing cross correlation between Academy Sports Outdoors and WISCONSIN ELEC PWR, you can compare the effects of market volatilities on Academy Sports and WISCONSIN 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 WISCONSIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and WISCONSIN.
Diversification Opportunities for Academy Sports and WISCONSIN
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Academy and WISCONSIN is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and WISCONSIN ELEC PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WISCONSIN ELEC PWR 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 WISCONSIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WISCONSIN ELEC PWR has no effect on the direction of Academy Sports i.e., Academy Sports and WISCONSIN go up and down completely randomly.
Pair Corralation between Academy Sports and WISCONSIN
Considering the 90-day investment horizon Academy Sports Outdoors is expected to under-perform the WISCONSIN. But the stock apears to be less risky and, when comparing its historical volatility, Academy Sports Outdoors is 1.1 times less risky than WISCONSIN. The stock trades about -0.18 of its potential returns per unit of risk. The WISCONSIN ELEC PWR is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 11,753 in WISCONSIN ELEC PWR on October 24, 2024 and sell it today you would lose (240.00) from holding WISCONSIN ELEC PWR or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Academy Sports Outdoors vs. WISCONSIN ELEC PWR
Performance |
| Timeline |
| Academy Sports Outdoors |
| WISCONSIN ELEC PWR |
Academy Sports and WISCONSIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and WISCONSIN
The main advantage of trading using opposite Academy Sports and WISCONSIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports position performs unexpectedly, WISCONSIN 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 WISCONSIN will offset losses from the drop in WISCONSIN's long position.| Academy Sports vs. Williams Sonoma | Academy Sports vs. AutoZone | Academy Sports vs. Ulta Beauty | Academy Sports vs. Best Buy Co |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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