Correlation Between Hibbett Sports and T.J. Maxx
Can any of the company-specific risk be diversified away by investing in both Hibbett Sports and T.J. Maxx 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 T.J. Maxx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hibbett Sports and The TJX Companies, you can compare the effects of market volatilities on Hibbett Sports and T.J. Maxx 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 T.J. Maxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hibbett Sports and T.J. Maxx.
Diversification Opportunities for Hibbett Sports and T.J. Maxx
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hibbett and T.J. is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hibbett Sports and The TJX Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJX Companies 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 T.J. Maxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJX Companies has no effect on the direction of Hibbett Sports i.e., Hibbett Sports and T.J. Maxx go up and down completely randomly.
Pair Corralation between Hibbett Sports and T.J. Maxx
If you would invest 11,382 in The TJX Companies on August 28, 2024 and sell it today you would earn a total of 1,097 from holding The TJX Companies or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hibbett Sports vs. The TJX Companies
Performance |
| Timeline |
| Hibbett Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TJX Companies |
Hibbett Sports and T.J. Maxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hibbett Sports and T.J. Maxx
The main advantage of trading using opposite Hibbett Sports and T.J. Maxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hibbett Sports position performs unexpectedly, T.J. Maxx 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 T.J. Maxx will offset losses from the drop in T.J. Maxx's long position.| Hibbett Sports vs. Big 5 Sporting | Hibbett Sports vs. Genesco | Hibbett Sports vs. Shoe Carnival | Hibbett Sports vs. MarineMax |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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