Correlation Between SpartanNash and Alliance Entertainment
Can any of the company-specific risk be diversified away by investing in both SpartanNash and Alliance Entertainment 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 SpartanNash and Alliance Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpartanNash Co and Alliance Entertainment Holding, you can compare the effects of market volatilities on SpartanNash and Alliance Entertainment 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 SpartanNash with a short position of Alliance Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpartanNash and Alliance Entertainment.
Diversification Opportunities for SpartanNash and Alliance Entertainment
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SpartanNash and Alliance is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SpartanNash Co and Alliance Entertainment Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Entertainment and SpartanNash 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 SpartanNash Co are associated (or correlated) with Alliance Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Entertainment has no effect on the direction of SpartanNash i.e., SpartanNash and Alliance Entertainment go up and down completely randomly.
Pair Corralation between SpartanNash and Alliance Entertainment
Given the investment horizon of 90 days SpartanNash is expected to generate 4.3 times less return on investment than Alliance Entertainment. But when comparing it to its historical volatility, SpartanNash Co is 4.54 times less risky than Alliance Entertainment. It trades about 0.23 of its potential returns per unit of risk. Alliance Entertainment Holding is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 479.00 in Alliance Entertainment Holding on September 12, 2024 and sell it today you would earn a total of 140.00 from holding Alliance Entertainment Holding or generate 29.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SpartanNash Co vs. Alliance Entertainment Holding
Performance |
| Timeline |
| SpartanNash |
| Alliance Entertainment |
SpartanNash and Alliance Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpartanNash and Alliance Entertainment
The main advantage of trading using opposite SpartanNash and Alliance Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpartanNash position performs unexpectedly, Alliance Entertainment 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 Alliance Entertainment will offset losses from the drop in Alliance Entertainment's long position.| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
| Alliance Entertainment vs. Independence Realty Trust | Alliance Entertainment vs. Genfit | Alliance Entertainment vs. Alchemy Investments Acquisition | Alliance Entertainment vs. Inhibrx |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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