Correlation Between OFFICE DEPOT and STAG Industrial
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and STAG Industrial 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 STAG Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and STAG Industrial, you can compare the effects of market volatilities on OFFICE DEPOT and STAG Industrial 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 STAG Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and STAG Industrial.
Diversification Opportunities for OFFICE DEPOT and STAG Industrial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and STAG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and STAG Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial 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 STAG Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and STAG Industrial go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and STAG Industrial
If you would invest 3,354 in STAG Industrial on September 3, 2024 and sell it today you would earn a total of 92.00 from holding STAG Industrial or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
OFFICE DEPOT vs. STAG Industrial
Performance |
| Timeline |
| OFFICE DEPOT |
| STAG Industrial |
OFFICE DEPOT and STAG Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and STAG Industrial
The main advantage of trading using opposite OFFICE DEPOT and STAG Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, STAG Industrial 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 STAG Industrial will offset losses from the drop in STAG Industrial's long position.| OFFICE DEPOT vs. EHEALTH | OFFICE DEPOT vs. Ameriprise Financial | OFFICE DEPOT vs. CHIBA BANK | OFFICE DEPOT vs. MINCO SILVER |
| STAG Industrial vs. PKSHA TECHNOLOGY INC | STAG Industrial vs. IMPERIAL TOBACCO | STAG Industrial vs. ORMAT TECHNOLOGIES | STAG Industrial vs. Southwest Airlines Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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