Correlation Between Shoe Carnival and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both Shoe Carnival and Concrete Pumping 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 Shoe Carnival and Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoe Carnival and Concrete Pumping Holdings, you can compare the effects of market volatilities on Shoe Carnival and Concrete Pumping 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 Shoe Carnival with a short position of Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoe Carnival and Concrete Pumping.
Diversification Opportunities for Shoe Carnival and Concrete Pumping
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shoe and Concrete is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shoe Carnival and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings and Shoe Carnival 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 Shoe Carnival are associated (or correlated) with Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Shoe Carnival i.e., Shoe Carnival and Concrete Pumping go up and down completely randomly.
Pair Corralation between Shoe Carnival and Concrete Pumping
If you would invest 2,373 in Shoe Carnival on September 12, 2024 and sell it today you would earn a total of 1,237 from holding Shoe Carnival or generate 52.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Shoe Carnival vs. Concrete Pumping Holdings
Performance |
| Timeline |
| Shoe Carnival |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shoe Carnival and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shoe Carnival and Concrete Pumping
The main advantage of trading using opposite Shoe Carnival and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoe Carnival position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.| Shoe Carnival vs. Foot Locker | Shoe Carnival vs. Lands End | Shoe Carnival vs. Duluth Holdings | Shoe Carnival vs. Destination XL Group |
| Concrete Pumping vs. Hf Foods Group | Concrete Pumping vs. Diageo PLC ADR | Concrete Pumping vs. Marfrig Global Foods | Concrete Pumping vs. Village Super Market |
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.
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