Correlation Between SPARTAN STORES and BOS BETTER
Can any of the company-specific risk be diversified away by investing in both SPARTAN STORES and BOS BETTER 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 BOS BETTER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPARTAN STORES and BOS BETTER ONLINE, you can compare the effects of market volatilities on SPARTAN STORES and BOS BETTER 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 BOS BETTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and BOS BETTER.
Diversification Opportunities for SPARTAN STORES and BOS BETTER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPARTAN and BOS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPARTAN STORES and BOS BETTER ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS BETTER ONLINE 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 BOS BETTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS BETTER ONLINE has no effect on the direction of SPARTAN STORES i.e., SPARTAN STORES and BOS BETTER go up and down completely randomly.
Pair Corralation between SPARTAN STORES and BOS BETTER
If you would invest 236.00 in BOS BETTER ONLINE on August 28, 2024 and sell it today you would earn a total of 0.00 from holding BOS BETTER ONLINE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPARTAN STORES vs. BOS BETTER ONLINE
Performance |
| Timeline |
| SPARTAN STORES |
| BOS BETTER ONLINE |
SPARTAN STORES and BOS BETTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPARTAN STORES and BOS BETTER
The main advantage of trading using opposite SPARTAN STORES and BOS BETTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPARTAN STORES position performs unexpectedly, BOS BETTER 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 BOS BETTER will offset losses from the drop in BOS BETTER's long position.| SPARTAN STORES vs. Apple Inc | SPARTAN STORES vs. Apple Inc | SPARTAN STORES vs. Microsoft | SPARTAN STORES vs. Microsoft |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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