Correlation Between Caseys General and Boomer Holdings
Can any of the company-specific risk be diversified away by investing in both Caseys General and Boomer Holdings 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 Caseys General and Boomer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and Boomer Holdings, you can compare the effects of market volatilities on Caseys General and Boomer Holdings 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 Caseys General with a short position of Boomer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Boomer Holdings.
Diversification Opportunities for Caseys General and Boomer Holdings
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Caseys and Boomer is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and Boomer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boomer Holdings and Caseys General 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 Caseys General Stores are associated (or correlated) with Boomer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boomer Holdings has no effect on the direction of Caseys General i.e., Caseys General and Boomer Holdings go up and down completely randomly.
Pair Corralation between Caseys General and Boomer Holdings
If you would invest 40,010 in Caseys General Stores on August 28, 2024 and sell it today you would earn a total of 2,659 from holding Caseys General Stores or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Caseys General Stores vs. Boomer Holdings
Performance |
| Timeline |
| Caseys General Stores |
| Boomer Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caseys General and Boomer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and Boomer Holdings
The main advantage of trading using opposite Caseys General and Boomer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, Boomer Holdings 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 Boomer Holdings will offset losses from the drop in Boomer Holdings' long position.| Caseys General vs. Leslies | Caseys General vs. Sally Beauty Holdings | Caseys General vs. ODP Corp | Caseys General vs. 1 800 FLOWERSCOM |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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