Correlation Between GameStop Corp and AutoZone
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and AutoZone 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 GameStop Corp and AutoZone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and AutoZone, you can compare the effects of market volatilities on GameStop Corp and AutoZone 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 GameStop Corp with a short position of AutoZone. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and AutoZone.
Diversification Opportunities for GameStop Corp and AutoZone
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GameStop and AutoZone is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and AutoZone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoZone and GameStop Corp 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 GameStop Corp are associated (or correlated) with AutoZone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoZone has no effect on the direction of GameStop Corp i.e., GameStop Corp and AutoZone go up and down completely randomly.
Pair Corralation between GameStop Corp and AutoZone
Assuming the 90 days trading horizon GameStop Corp is expected to generate 5.48 times more return on investment than AutoZone. However, GameStop Corp is 5.48 times more volatile than AutoZone. It trades about 0.03 of its potential returns per unit of risk. AutoZone is currently generating about 0.1 per unit of risk. If you would invest 2,842 in GameStop Corp on September 3, 2024 and sell it today you would lose (159.00) from holding GameStop Corp or give up 5.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. AutoZone
Performance |
| Timeline |
| GameStop Corp |
| AutoZone |
GameStop Corp and AutoZone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and AutoZone
The main advantage of trading using opposite GameStop Corp and AutoZone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, AutoZone 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 AutoZone will offset losses from the drop in AutoZone's long position.| GameStop Corp vs. MercadoLibre | GameStop Corp vs. eBay Inc | GameStop Corp vs. Genuine Parts | GameStop Corp vs. Superior Plus Corp |
| AutoZone vs. NORTHEAST UTILITIES | AutoZone vs. GameStop Corp | AutoZone vs. HOCHSCHILD MINING | AutoZone vs. VARIOUS EATERIES LS |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |