Correlation Between Kohls Corp and Sears Canada
Can any of the company-specific risk be diversified away by investing in both Kohls Corp and Sears Canada 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 Kohls Corp and Sears Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kohls Corp and Sears Canada, you can compare the effects of market volatilities on Kohls Corp and Sears Canada 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 Kohls Corp with a short position of Sears Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohls Corp and Sears Canada.
Diversification Opportunities for Kohls Corp and Sears Canada
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kohls and Sears is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kohls Corp and Sears Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sears Canada and Kohls 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 Kohls Corp are associated (or correlated) with Sears Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sears Canada has no effect on the direction of Kohls Corp i.e., Kohls Corp and Sears Canada go up and down completely randomly.
Pair Corralation between Kohls Corp and Sears Canada
If you would invest 0.01 in Sears Canada on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Sears Canada or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Kohls Corp vs. Sears Canada
Performance |
| Timeline |
| Kohls Corp |
| Sears Canada |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kohls Corp and Sears Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohls Corp and Sears Canada
The main advantage of trading using opposite Kohls Corp and Sears Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohls Corp position performs unexpectedly, Sears Canada 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 Sears Canada will offset losses from the drop in Sears Canada's long position.| Kohls Corp vs. Sea | Kohls Corp vs. Wayfair | Kohls Corp vs. Chewy Inc | Kohls Corp vs. Vipshop Holdings Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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