Correlation Between Card Factory and School Specialty
Can any of the company-specific risk be diversified away by investing in both Card Factory and School Specialty 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 Card Factory and School Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Card Factory plc and School Specialty, you can compare the effects of market volatilities on Card Factory and School Specialty 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 Card Factory with a short position of School Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Card Factory and School Specialty.
Diversification Opportunities for Card Factory and School Specialty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Card and School is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Card Factory plc and School Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on School Specialty and Card Factory 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 Card Factory plc are associated (or correlated) with School Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of School Specialty has no effect on the direction of Card Factory i.e., Card Factory and School Specialty go up and down completely randomly.
Pair Corralation between Card Factory and School Specialty
If you would invest 0.01 in School Specialty on November 3, 2024 and sell it today you would earn a total of 0.00 from holding School Specialty or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Card Factory plc vs. School Specialty
Performance |
| Timeline |
| Card Factory plc |
| School Specialty |
Card Factory and School Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Card Factory and School Specialty
The main advantage of trading using opposite Card Factory and School Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Card Factory position performs unexpectedly, School Specialty 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 School Specialty will offset losses from the drop in School Specialty's long position.| Card Factory vs. Ulta Beauty | Card Factory vs. Williams Sonoma | Card Factory vs. Dicks Sporting Goods | Card Factory vs. Best Buy Co |
| School Specialty vs. Card Factory plc | School Specialty vs. Ceconomy AG ADR | School Specialty vs. Bowlin Travel Centers | School Specialty vs. National Vision Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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