Correlation Between 111 and Ingles Markets
Can any of the company-specific risk be diversified away by investing in both 111 and Ingles Markets 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 111 and Ingles Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 111 Inc and Ingles Markets Incorporated, you can compare the effects of market volatilities on 111 and Ingles Markets 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 111 with a short position of Ingles Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of 111 and Ingles Markets.
Diversification Opportunities for 111 and Ingles Markets
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 111 and Ingles is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding 111 Inc and Ingles Markets Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingles Markets and 111 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 111 Inc are associated (or correlated) with Ingles Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingles Markets has no effect on the direction of 111 i.e., 111 and Ingles Markets go up and down completely randomly.
Pair Corralation between 111 and Ingles Markets
Allowing for the 90-day total investment horizon 111 Inc is expected to under-perform the Ingles Markets. In addition to that, 111 is 1.49 times more volatile than Ingles Markets Incorporated. It trades about -0.31 of its total potential returns per unit of risk. Ingles Markets Incorporated is currently generating about 0.42 per unit of volatility. If you would invest 6,189 in Ingles Markets Incorporated on August 28, 2024 and sell it today you would earn a total of 1,341 from holding Ingles Markets Incorporated or generate 21.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
111 Inc vs. Ingles Markets Incorporated
Performance |
| Timeline |
| 111 Inc |
| Ingles Markets |
111 and Ingles Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 111 and Ingles Markets
The main advantage of trading using opposite 111 and Ingles Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 111 position performs unexpectedly, Ingles Markets 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 Ingles Markets will offset losses from the drop in Ingles Markets' long position.| 111 vs. Walgreens Boots Alliance | 111 vs. PetMed Express | 111 vs. China Jo Jo Drugstores | 111 vs. Leafly Holdings |
| Ingles Markets vs. Innovative Food Hldg | Ingles Markets vs. Calavo Growers | Ingles Markets vs. The Chefs Warehouse | Ingles Markets vs. AMCON Distributing |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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