Correlation Between Container Store and Caseys General
Can any of the company-specific risk be diversified away by investing in both Container Store and Caseys General 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 Container Store and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Container Store Group and Caseys General Stores, you can compare the effects of market volatilities on Container Store and Caseys General 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 Container Store with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Container Store and Caseys General.
Diversification Opportunities for Container Store and Caseys General
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Container and Caseys is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Container Store Group and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and Container Store 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 Container Store Group are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Container Store i.e., Container Store and Caseys General go up and down completely randomly.
Pair Corralation between Container Store and Caseys General
Considering the 90-day investment horizon Container Store Group is expected to under-perform the Caseys General. In addition to that, Container Store is 5.3 times more volatile than Caseys General Stores. It trades about -0.05 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.07 per unit of volatility. If you would invest 23,019 in Caseys General Stores on October 23, 2024 and sell it today you would earn a total of 16,132 from holding Caseys General Stores or generate 70.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Container Store Group vs. Caseys General Stores
Performance |
| Timeline |
| Container Store Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Caseys General Stores |
Container Store and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Container Store and Caseys General
The main advantage of trading using opposite Container Store and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Container Store position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| Container Store vs. Tillys Inc | Container Store vs. Big 5 Sporting | Container Store vs. Sportsmans | Container Store vs. Noodles Company |
| Caseys General vs. Leslies | Caseys General vs. Sally Beauty Holdings | Caseys General vs. ODP Corp | Caseys General vs. 1 800 FLOWERSCOM |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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