Correlation Between Kinepolis Group and SPARTAN STORES
Can any of the company-specific risk be diversified away by investing in both Kinepolis Group and SPARTAN 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 Kinepolis Group and SPARTAN STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinepolis Group NV and SPARTAN STORES, you can compare the effects of market volatilities on Kinepolis Group and SPARTAN 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 Kinepolis Group with a short position of SPARTAN STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinepolis Group and SPARTAN STORES.
Diversification Opportunities for Kinepolis Group and SPARTAN STORES
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinepolis and SPARTAN is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kinepolis Group NV and SPARTAN STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPARTAN STORES and Kinepolis Group 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 Kinepolis Group NV are associated (or correlated) with SPARTAN STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPARTAN STORES has no effect on the direction of Kinepolis Group i.e., Kinepolis Group and SPARTAN STORES go up and down completely randomly.
Pair Corralation between Kinepolis Group and SPARTAN STORES
Assuming the 90 days trading horizon Kinepolis Group NV is expected to under-perform the SPARTAN STORES. But the stock apears to be less risky and, when comparing its historical volatility, Kinepolis Group NV is 1.05 times less risky than SPARTAN STORES. The stock trades about -0.01 of its potential returns per unit of risk. The SPARTAN STORES is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,709 in SPARTAN STORES on September 14, 2024 and sell it today you would earn a total of 121.00 from holding SPARTAN STORES or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinepolis Group NV vs. SPARTAN STORES
Performance |
| Timeline |
| Kinepolis Group NV |
| SPARTAN STORES |
Kinepolis Group and SPARTAN STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinepolis Group and SPARTAN STORES
The main advantage of trading using opposite Kinepolis Group and SPARTAN STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinepolis Group position performs unexpectedly, SPARTAN 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 SPARTAN STORES will offset losses from the drop in SPARTAN STORES's long position.| Kinepolis Group vs. SPARTAN STORES | Kinepolis Group vs. BURLINGTON STORES | Kinepolis Group vs. BOSTON BEER A | Kinepolis Group vs. Fast Retailing Co |
| SPARTAN STORES vs. Apple Inc | SPARTAN STORES vs. Apple Inc | SPARTAN STORES vs. Apple Inc | SPARTAN STORES vs. Apple Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |