Correlation Between SPARTAN STORES and DATAGROUP
Can any of the company-specific risk be diversified away by investing in both SPARTAN STORES and DATAGROUP 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 DATAGROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPARTAN STORES and DATAGROUP SE, you can compare the effects of market volatilities on SPARTAN STORES and DATAGROUP 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 DATAGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and DATAGROUP.
Diversification Opportunities for SPARTAN STORES and DATAGROUP
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPARTAN and DATAGROUP is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SPARTAN STORES and DATAGROUP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAGROUP SE 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 DATAGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAGROUP SE has no effect on the direction of SPARTAN STORES i.e., SPARTAN STORES and DATAGROUP go up and down completely randomly.
Pair Corralation between SPARTAN STORES and DATAGROUP
Assuming the 90 days trading horizon SPARTAN STORES is expected to under-perform the DATAGROUP. But the stock apears to be less risky and, when comparing its historical volatility, SPARTAN STORES is 1.69 times less risky than DATAGROUP. The stock trades about 0.0 of its potential returns per unit of risk. The DATAGROUP SE is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,955 in DATAGROUP SE on October 11, 2024 and sell it today you would earn a total of 550.00 from holding DATAGROUP SE or generate 13.91% 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. DATAGROUP SE
Performance |
| Timeline |
| SPARTAN STORES |
| DATAGROUP SE |
SPARTAN STORES and DATAGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPARTAN STORES and DATAGROUP
The main advantage of trading using opposite SPARTAN STORES and DATAGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPARTAN STORES position performs unexpectedly, DATAGROUP 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 DATAGROUP will offset losses from the drop in DATAGROUP's long position.| SPARTAN STORES vs. GRIFFIN MINING LTD | SPARTAN STORES vs. MCEWEN MINING INC | SPARTAN STORES vs. CarsalesCom | SPARTAN STORES vs. De Grey Mining |
| DATAGROUP vs. Laureate Education | DATAGROUP vs. MARKET VECTR RETAIL | DATAGROUP vs. SPARTAN STORES | DATAGROUP vs. EEDUCATION ALBERT AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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