Correlation Between SPARTAN STORES and REXFORD INDREALTY
Can any of the company-specific risk be diversified away by investing in both SPARTAN STORES and REXFORD INDREALTY 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 SPARTAN STORES and REXFORD INDREALTY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPARTAN STORES and REXFORD INDREALTY DL 01, you can compare the effects of market volatilities on SPARTAN STORES and REXFORD INDREALTY 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 SPARTAN STORES with a short position of REXFORD INDREALTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and REXFORD INDREALTY.
Diversification Opportunities for SPARTAN STORES and REXFORD INDREALTY
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPARTAN and REXFORD is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SPARTAN STORES and REXFORD INDREALTY DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REXFORD INDREALTY and SPARTAN STORES 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 SPARTAN STORES are associated (or correlated) with REXFORD INDREALTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REXFORD INDREALTY has no effect on the direction of SPARTAN STORES i.e., SPARTAN STORES and REXFORD INDREALTY go up and down completely randomly.
Pair Corralation between SPARTAN STORES and REXFORD INDREALTY
Assuming the 90 days trading horizon SPARTAN STORES is expected to under-perform the REXFORD INDREALTY. In addition to that, SPARTAN STORES is 3.46 times more volatile than REXFORD INDREALTY DL 01. It trades about -0.1 of its total potential returns per unit of risk. REXFORD INDREALTY DL 01 is currently generating about 0.05 per unit of volatility. If you would invest 3,920 in REXFORD INDREALTY DL 01 on September 3, 2024 and sell it today you would earn a total of 40.00 from holding REXFORD INDREALTY DL 01 or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPARTAN STORES vs. REXFORD INDREALTY DL 01
Performance |
| Timeline |
| SPARTAN STORES |
| REXFORD INDREALTY |
SPARTAN STORES and REXFORD INDREALTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPARTAN STORES and REXFORD INDREALTY
The main advantage of trading using opposite SPARTAN STORES and REXFORD INDREALTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPARTAN STORES position performs unexpectedly, REXFORD INDREALTY 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 REXFORD INDREALTY will offset losses from the drop in REXFORD INDREALTY's long position.| SPARTAN STORES vs. Playa Hotels Resorts | SPARTAN STORES vs. TYSON FOODS A | SPARTAN STORES vs. Host Hotels Resorts | SPARTAN STORES vs. Pebblebrook Hotel Trust |
| REXFORD INDREALTY vs. Bausch Health Companies | REXFORD INDREALTY vs. SOFI TECHNOLOGIES | REXFORD INDREALTY vs. Sabra Health Care | REXFORD INDREALTY vs. NetSol Technologies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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