Correlation Between Foot Locker and SunCar Technology
Can any of the company-specific risk be diversified away by investing in both Foot Locker and SunCar Technology 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 Foot Locker and SunCar Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foot Locker and SunCar Technology Group, you can compare the effects of market volatilities on Foot Locker and SunCar Technology 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 Foot Locker with a short position of SunCar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foot Locker and SunCar Technology.
Diversification Opportunities for Foot Locker and SunCar Technology
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Foot and SunCar is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Foot Locker and SunCar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunCar Technology and Foot Locker 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 Foot Locker are associated (or correlated) with SunCar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunCar Technology has no effect on the direction of Foot Locker i.e., Foot Locker and SunCar Technology go up and down completely randomly.
Pair Corralation between Foot Locker and SunCar Technology
Allowing for the 90-day total investment horizon Foot Locker is expected to under-perform the SunCar Technology. But the stock apears to be less risky and, when comparing its historical volatility, Foot Locker is 5.54 times less risky than SunCar Technology. The stock trades about -0.02 of its potential returns per unit of risk. The SunCar Technology Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5.73 in SunCar Technology Group on August 27, 2024 and sell it today you would earn a total of 25.27 from holding SunCar Technology Group or generate 441.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.13% |
| Values | Daily Returns |
Foot Locker vs. SunCar Technology Group
Performance |
| Timeline |
| Foot Locker |
| SunCar Technology |
Foot Locker and SunCar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foot Locker and SunCar Technology
The main advantage of trading using opposite Foot Locker and SunCar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foot Locker position performs unexpectedly, SunCar Technology 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 SunCar Technology will offset losses from the drop in SunCar Technology's long position.| Foot Locker vs. Abercrombie Fitch | Foot Locker vs. Urban Outfitters | Foot Locker vs. Childrens Place | Foot Locker vs. American Eagle Outfitters |
| SunCar Technology vs. Keurig Dr Pepper | SunCar Technology vs. Naked Wines plc | SunCar Technology vs. Ambev SA ADR | SunCar Technology vs. Primo Brands |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity 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 Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |