Correlation Between Hibbett Sports and Cato
Can any of the company-specific risk be diversified away by investing in both Hibbett Sports and Cato 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 Hibbett Sports and Cato into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hibbett Sports and Cato Corporation, you can compare the effects of market volatilities on Hibbett Sports and Cato 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 Hibbett Sports with a short position of Cato. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hibbett Sports and Cato.
Diversification Opportunities for Hibbett Sports and Cato
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hibbett and Cato is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hibbett Sports and Cato Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cato and Hibbett Sports 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 Hibbett Sports are associated (or correlated) with Cato. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cato has no effect on the direction of Hibbett Sports i.e., Hibbett Sports and Cato go up and down completely randomly.
Pair Corralation between Hibbett Sports and Cato
If you would invest (100.00) in Hibbett Sports on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Hibbett Sports or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hibbett Sports vs. Cato Corp.
Performance |
| Timeline |
| Hibbett Sports |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Cato |
Hibbett Sports and Cato Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hibbett Sports and Cato
The main advantage of trading using opposite Hibbett Sports and Cato positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hibbett Sports position performs unexpectedly, Cato 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 Cato will offset losses from the drop in Cato's long position.| Hibbett Sports vs. Big 5 Sporting | Hibbett Sports vs. Genesco | Hibbett Sports vs. Shoe Carnival | Hibbett Sports vs. MarineMax |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |