Correlation Between Coles and Ingles Markets
Can any of the company-specific risk be diversified away by investing in both Coles and Ingles Markets 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 Coles and Ingles Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coles Group and Ingles Markets Incorporated, you can compare the effects of market volatilities on Coles and Ingles Markets 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 Coles with a short position of Ingles Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coles and Ingles Markets.
Diversification Opportunities for Coles and Ingles Markets
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coles and Ingles is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Coles Group and Ingles Markets Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingles Markets and Coles 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 Coles Group are associated (or correlated) with Ingles Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingles Markets has no effect on the direction of Coles i.e., Coles and Ingles Markets go up and down completely randomly.
Pair Corralation between Coles and Ingles Markets
If you would invest 6,189 in Ingles Markets Incorporated on August 28, 2024 and sell it today you would earn a total of 1,341 from holding Ingles Markets Incorporated or generate 21.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Coles Group vs. Ingles Markets Incorporated
Performance |
| Timeline |
| Coles Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ingles Markets |
Coles and Ingles Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coles and Ingles Markets
The main advantage of trading using opposite Coles and Ingles Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coles position performs unexpectedly, Ingles Markets 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 Ingles Markets will offset losses from the drop in Ingles Markets' long position.| Coles vs. Grocery Outlet Holding | Coles vs. Krispy Kreme | Coles vs. Koninklijke Ahold Delhaize | Coles vs. Weis Markets |
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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 Stocks Directory module to find actively traded stocks across global markets.
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