Correlation Between School Specialty and Ceconomy
Can any of the company-specific risk be diversified away by investing in both School Specialty and Ceconomy 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 School Specialty and Ceconomy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between School Specialty and Ceconomy AG ADR, you can compare the effects of market volatilities on School Specialty and Ceconomy 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 School Specialty with a short position of Ceconomy. Check out your portfolio center. Please also check ongoing floating volatility patterns of School Specialty and Ceconomy.
Diversification Opportunities for School Specialty and Ceconomy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between School and Ceconomy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding School Specialty and Ceconomy AG ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceconomy AG ADR and School Specialty 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 School Specialty are associated (or correlated) with Ceconomy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceconomy AG ADR has no effect on the direction of School Specialty i.e., School Specialty and Ceconomy go up and down completely randomly.
Pair Corralation between School Specialty and Ceconomy
If you would invest 49.00 in Ceconomy AG ADR on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Ceconomy AG ADR or generate 18.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
School Specialty vs. Ceconomy AG ADR
Performance |
| Timeline |
| School Specialty |
| Ceconomy AG ADR |
School Specialty and Ceconomy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with School Specialty and Ceconomy
The main advantage of trading using opposite School Specialty and Ceconomy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if School Specialty position performs unexpectedly, Ceconomy 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 Ceconomy will offset losses from the drop in Ceconomy's long position.| School Specialty vs. Card Factory plc | School Specialty vs. Ceconomy AG ADR | School Specialty vs. Bowlin Travel Centers | School Specialty vs. National Vision Holdings |
| Ceconomy vs. Green River Gold | Ceconomy vs. Dixons Carphone plc | Ceconomy vs. Tandy Leather Factory | Ceconomy vs. Card Factory plc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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