Correlation Between Caseys General and Conns
Can any of the company-specific risk be diversified away by investing in both Caseys General and Conns 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 Conns 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 Conns Inc, you can compare the effects of market volatilities on Caseys General and Conns 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 Conns. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Conns.
Diversification Opportunities for Caseys General and Conns
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caseys and Conns is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and Conns Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conns Inc 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 Conns. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conns Inc has no effect on the direction of Caseys General i.e., Caseys General and Conns go up and down completely randomly.
Pair Corralation between Caseys General and Conns
Given the investment horizon of 90 days Caseys General Stores is expected to generate 0.15 times more return on investment than Conns. However, Caseys General Stores is 6.56 times less risky than Conns. It trades about 0.1 of its potential returns per unit of risk. Conns Inc is currently generating about -0.29 per unit of risk. If you would invest 30,331 in Caseys General Stores on August 27, 2024 and sell it today you would earn a total of 12,457 from holding Caseys General Stores or generate 41.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 61.17% |
| Values | Daily Returns |
Caseys General Stores vs. Conns Inc
Performance |
| Timeline |
| Caseys General Stores |
| Conns Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caseys General and Conns Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and Conns
The main advantage of trading using opposite Caseys General and Conns positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, Conns 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 Conns will offset losses from the drop in Conns' 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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