Correlation Between ODP Corp and Container Store
Can any of the company-specific risk be diversified away by investing in both ODP Corp and Container Store 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 ODP Corp and Container Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ODP Corp and Container Store Group, you can compare the effects of market volatilities on ODP Corp and Container Store 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 ODP Corp with a short position of Container Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODP Corp and Container Store.
Diversification Opportunities for ODP Corp and Container Store
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ODP and Container is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding ODP Corp and Container Store Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Container Store Group and ODP 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 ODP Corp are associated (or correlated) with Container Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Container Store Group has no effect on the direction of ODP Corp i.e., ODP Corp and Container Store go up and down completely randomly.
Pair Corralation between ODP Corp and Container Store
Considering the 90-day investment horizon ODP Corp is expected to under-perform the Container Store. But the stock apears to be less risky and, when comparing its historical volatility, ODP Corp is 3.33 times less risky than Container Store. The stock trades about -0.08 of its potential returns per unit of risk. The Container Store Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,545 in Container Store Group on November 3, 2024 and sell it today you would lose (1,280) from holding Container Store Group or give up 82.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.89% |
| Values | Daily Returns |
ODP Corp vs. Container Store Group
Performance |
| Timeline |
| ODP Corp |
| Container Store Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ODP Corp and Container Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ODP Corp and Container Store
The main advantage of trading using opposite ODP Corp and Container Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODP Corp position performs unexpectedly, Container Store 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 Container Store will offset losses from the drop in Container Store's long position.| ODP Corp vs. Leslies | ODP Corp vs. Sally Beauty Holdings | ODP Corp vs. 1 800 FLOWERSCOM | ODP Corp vs. Caseys General Stores |
| Container Store vs. Tillys Inc | Container Store vs. Big 5 Sporting | Container Store vs. Sportsmans | Container Store vs. Noodles Company |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |