Correlation Between Capital One and STAG Industrial,
Can any of the company-specific risk be diversified away by investing in both Capital One and STAG Industrial, 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 Capital One and STAG Industrial, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital One Financial and STAG Industrial,, you can compare the effects of market volatilities on Capital One and STAG Industrial, 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 Capital One with a short position of STAG Industrial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital One and STAG Industrial,.
Diversification Opportunities for Capital One and STAG Industrial,
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capital and STAG is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Capital One Financial and STAG Industrial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial, and Capital One 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 Capital One Financial are associated (or correlated) with STAG Industrial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial, has no effect on the direction of Capital One i.e., Capital One and STAG Industrial, go up and down completely randomly.
Pair Corralation between Capital One and STAG Industrial,
Assuming the 90 days trading horizon Capital One Financial is expected to generate 0.25 times more return on investment than STAG Industrial,. However, Capital One Financial is 4.08 times less risky than STAG Industrial,. It trades about -0.33 of its potential returns per unit of risk. STAG Industrial, is currently generating about -0.14 per unit of risk. If you would invest 56,772 in Capital One Financial on October 16, 2024 and sell it today you would lose (1,954) from holding Capital One Financial or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital One Financial vs. STAG Industrial,
Performance |
| Timeline |
| Capital One Financial |
| STAG Industrial, |
Capital One and STAG Industrial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital One and STAG Industrial,
The main advantage of trading using opposite Capital One and STAG Industrial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital One position performs unexpectedly, STAG Industrial, 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 STAG Industrial, will offset losses from the drop in STAG Industrial,'s long position.| Capital One vs. Pure Storage, | Capital One vs. United Natural Foods, | Capital One vs. Metalrgica Riosulense SA | Capital One vs. Zoom Video Communications |
| STAG Industrial, vs. Capital One Financial | STAG Industrial, vs. Synchrony Financial | STAG Industrial, vs. Ameriprise Financial | STAG Industrial, vs. CM Hospitalar SA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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