Correlation Between OFFICE DEPOT and Stanley Electric
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and Stanley Electric 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 OFFICE DEPOT and Stanley Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and Stanley Electric Co, you can compare the effects of market volatilities on OFFICE DEPOT and Stanley Electric 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 OFFICE DEPOT with a short position of Stanley Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Stanley Electric.
Diversification Opportunities for OFFICE DEPOT and Stanley Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and Stanley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and Stanley Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stanley Electric and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with Stanley Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stanley Electric has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and Stanley Electric go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Stanley Electric
If you would invest 1,540 in Stanley Electric Co on October 16, 2024 and sell it today you would earn a total of 20.00 from holding Stanley Electric Co or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. Stanley Electric Co
Performance |
| Timeline |
| OFFICE DEPOT |
| Stanley Electric |
OFFICE DEPOT and Stanley Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Stanley Electric
The main advantage of trading using opposite OFFICE DEPOT and Stanley Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, Stanley Electric 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 Stanley Electric will offset losses from the drop in Stanley Electric's long position.| OFFICE DEPOT vs. WillScot Mobile Mini | OFFICE DEPOT vs. Ross Stores | OFFICE DEPOT vs. Geely Automobile Holdings | OFFICE DEPOT vs. T MOBILE US |
| Stanley Electric vs. Hisense Home Appliances | Stanley Electric vs. American Airlines Group | Stanley Electric vs. Beazer Homes USA | Stanley Electric vs. OFFICE DEPOT |
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 Stocks Directory module to find actively traded stocks across global markets.
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