Correlation Between Savers Value and Container Store
Can any of the company-specific risk be diversified away by investing in both Savers Value and Container Store 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 Savers Value and Container Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Savers Value Village, and Container Store Group, you can compare the effects of market volatilities on Savers Value and Container Store 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 Savers Value with a short position of Container Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of Savers Value and Container Store.
Diversification Opportunities for Savers Value and Container Store
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Savers and Container is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Savers Value Village, and Container Store Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Container Store Group and Savers Value 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 Savers Value Village, are associated (or correlated) with Container Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Container Store Group has no effect on the direction of Savers Value i.e., Savers Value and Container Store go up and down completely randomly.
Pair Corralation between Savers Value and Container Store
Considering the 90-day investment horizon Savers Value Village, is expected to generate 0.41 times more return on investment than Container Store. However, Savers Value Village, is 2.42 times less risky than Container Store. It trades about -0.05 of its potential returns per unit of risk. Container Store Group is currently generating about -0.04 per unit of risk. If you would invest 2,291 in Savers Value Village, on August 28, 2024 and sell it today you would lose (1,323) from holding Savers Value Village, or give up 57.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Savers Value Village, vs. Container Store Group
Performance |
| Timeline |
| Savers Value Village, |
| Container Store Group |
Savers Value and Container Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Savers Value and Container Store
The main advantage of trading using opposite Savers Value and Container Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savers Value position performs unexpectedly, Container Store 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 Container Store will offset losses from the drop in Container Store's long position.| Savers Value vs. Yuexiu Transport Infrastructure | Savers Value vs. Encore Capital Group | Savers Value vs. KeyCorp | Savers Value vs. ACG Metals Limited |
| Container Store vs. Tillys Inc | Container Store vs. Big 5 Sporting | Container Store vs. Sportsmans | Container Store vs. Noodles Company |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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