Correlation Between Sprouts Farmers and Axfood AB
Can any of the company-specific risk be diversified away by investing in both Sprouts Farmers and Axfood AB 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 Sprouts Farmers and Axfood AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprouts Farmers Market and Axfood AB, you can compare the effects of market volatilities on Sprouts Farmers and Axfood AB 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 Sprouts Farmers with a short position of Axfood AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprouts Farmers and Axfood AB.
Diversification Opportunities for Sprouts Farmers and Axfood AB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sprouts and Axfood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sprouts Farmers Market and Axfood AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axfood AB and Sprouts Farmers 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 Sprouts Farmers Market are associated (or correlated) with Axfood AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axfood AB has no effect on the direction of Sprouts Farmers i.e., Sprouts Farmers and Axfood AB go up and down completely randomly.
Pair Corralation between Sprouts Farmers and Axfood AB
If you would invest 12,843 in Sprouts Farmers Market on September 1, 2024 and sell it today you would earn a total of 2,605 from holding Sprouts Farmers Market or generate 20.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sprouts Farmers Market vs. Axfood AB
Performance |
| Timeline |
| Sprouts Farmers Market |
| Axfood AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sprouts Farmers and Axfood AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprouts Farmers and Axfood AB
The main advantage of trading using opposite Sprouts Farmers and Axfood AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprouts Farmers position performs unexpectedly, Axfood AB 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 Axfood AB will offset losses from the drop in Axfood AB's long position.| Sprouts Farmers vs. Sendas Distribuidora SA | Sprouts Farmers vs. Natural Grocers by | Sprouts Farmers vs. Albertsons Companies | Sprouts Farmers vs. Ingles Markets Incorporated |
| Axfood AB vs. Loblaw Companies Limited | Axfood AB vs. Sprouts Farmers Market | Axfood AB vs. Kroger Company | Axfood AB 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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