Correlation Between Steven Madden and SYSCO
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By analyzing existing cross correlation between Steven Madden and SYSCO P 375, you can compare the effects of market volatilities on Steven Madden and SYSCO 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 Steven Madden with a short position of SYSCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and SYSCO.
Diversification Opportunities for Steven Madden and SYSCO
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Steven and SYSCO is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and SYSCO P 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSCO P 375 and Steven Madden 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 Steven Madden are associated (or correlated) with SYSCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSCO P 375 has no effect on the direction of Steven Madden i.e., Steven Madden and SYSCO go up and down completely randomly.
Pair Corralation between Steven Madden and SYSCO
Given the investment horizon of 90 days Steven Madden is expected to generate 5.43 times more return on investment than SYSCO. However, Steven Madden is 5.43 times more volatile than SYSCO P 375. It trades about 0.04 of its potential returns per unit of risk. SYSCO P 375 is currently generating about -0.21 per unit of risk. If you would invest 4,497 in Steven Madden on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Steven Madden or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steven Madden vs. SYSCO P 375
Performance |
| Timeline |
| Steven Madden |
| SYSCO P 375 |
Steven Madden and SYSCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and SYSCO
The main advantage of trading using opposite Steven Madden and SYSCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden position performs unexpectedly, SYSCO 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 SYSCO will offset losses from the drop in SYSCO's long position.| Steven Madden vs. Deckers Outdoor | Steven Madden vs. On Holding | Steven Madden vs. Crocs Inc | Steven Madden vs. Designer Brands |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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