Correlation Between Dollar General and SpartanNash
Can any of the company-specific risk be diversified away by investing in both Dollar General and SpartanNash 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 Dollar General and SpartanNash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dollar General and SpartanNash Co, you can compare the effects of market volatilities on Dollar General and SpartanNash 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 Dollar General with a short position of SpartanNash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dollar General and SpartanNash.
Diversification Opportunities for Dollar General and SpartanNash
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dollar and SpartanNash is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dollar General and SpartanNash Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpartanNash and Dollar 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 Dollar General are associated (or correlated) with SpartanNash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpartanNash has no effect on the direction of Dollar General i.e., Dollar General and SpartanNash go up and down completely randomly.
Pair Corralation between Dollar General and SpartanNash
Allowing for the 90-day total investment horizon Dollar General is expected to generate 0.63 times more return on investment than SpartanNash. However, Dollar General is 1.59 times less risky than SpartanNash. It trades about -0.08 of its potential returns per unit of risk. SpartanNash Co is currently generating about -0.15 per unit of risk. If you would invest 8,200 in Dollar General on September 4, 2024 and sell it today you would lose (298.00) from holding Dollar General or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dollar General vs. SpartanNash Co
Performance |
| Timeline |
| Dollar General |
| SpartanNash |
Dollar General and SpartanNash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dollar General and SpartanNash
The main advantage of trading using opposite Dollar General and SpartanNash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dollar General position performs unexpectedly, SpartanNash 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 SpartanNash will offset losses from the drop in SpartanNash's long position.| Dollar General vs. Aquagold International | Dollar General vs. Thrivent High Yield | Dollar General vs. Morningstar Unconstrained Allocation | Dollar General vs. Via Renewables |
| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets |