Correlation Between Hibbett Sports and Ross Stores
Can any of the company-specific risk be diversified away by investing in both Hibbett Sports and Ross Stores 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 Ross Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hibbett Sports and Ross Stores, you can compare the effects of market volatilities on Hibbett Sports and Ross Stores 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 Ross Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hibbett Sports and Ross Stores.
Diversification Opportunities for Hibbett Sports and Ross Stores
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hibbett and Ross is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hibbett Sports and Ross Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ross Stores 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 Ross Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ross Stores has no effect on the direction of Hibbett Sports i.e., Hibbett Sports and Ross Stores go up and down completely randomly.
Pair Corralation between Hibbett Sports and Ross Stores
If you would invest 14,316 in Ross Stores on August 29, 2024 and sell it today you would earn a total of 1,173 from holding Ross Stores or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Hibbett Sports vs. Ross Stores
Performance |
| Timeline |
| Hibbett Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ross Stores |
Hibbett Sports and Ross Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hibbett Sports and Ross Stores
The main advantage of trading using opposite Hibbett Sports and Ross Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hibbett Sports position performs unexpectedly, Ross Stores 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 Ross Stores will offset losses from the drop in Ross Stores' long position.| Hibbett Sports vs. Big 5 Sporting | Hibbett Sports vs. Genesco | Hibbett Sports vs. Shoe Carnival | Hibbett Sports vs. MarineMax |
| Ross Stores vs. Burlington Stores | Ross Stores vs. American Eagle Outfitters | Ross Stores vs. Lululemon Athletica | Ross Stores vs. Foot Locker |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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