Correlation Between SPARTAN STORES and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both SPARTAN STORES and Carnegie Clean 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 Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPARTAN STORES and Carnegie Clean Energy, you can compare the effects of market volatilities on SPARTAN STORES and Carnegie Clean 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 Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and Carnegie Clean.
Diversification Opportunities for SPARTAN STORES and Carnegie Clean
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPARTAN and Carnegie is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding SPARTAN STORES and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy 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 Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of SPARTAN STORES i.e., SPARTAN STORES and Carnegie Clean go up and down completely randomly.
Pair Corralation between SPARTAN STORES and Carnegie Clean
Assuming the 90 days trading horizon SPARTAN STORES is expected to under-perform the Carnegie Clean. But the stock apears to be less risky and, when comparing its historical volatility, SPARTAN STORES is 1.82 times less risky than Carnegie Clean. The stock trades about -0.11 of its potential returns per unit of risk. The Carnegie Clean Energy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.02 in Carnegie Clean Energy on November 7, 2024 and sell it today you would earn a total of 0.10 from holding Carnegie Clean Energy or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPARTAN STORES vs. Carnegie Clean Energy
Performance |
| Timeline |
| SPARTAN STORES |
| Carnegie Clean Energy |
SPARTAN STORES and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPARTAN STORES and Carnegie Clean
The main advantage of trading using opposite SPARTAN STORES and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPARTAN STORES position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| SPARTAN STORES vs. ALERION CLEANPOWER | SPARTAN STORES vs. Performance Food Group | SPARTAN STORES vs. Cairo Communication SpA | SPARTAN STORES vs. ULTRA CLEAN HLDGS |
| Carnegie Clean vs. Apollo Investment Corp | Carnegie Clean vs. RYANAIR HLDGS ADR | Carnegie Clean vs. Air New Zealand | Carnegie Clean vs. CHRYSALIS INVESTMENTS LTD |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |