Correlation Between Albertsons Companies and SFCCN

Can any of the company-specific risk be diversified away by investing in both Albertsons Companies and SFCCN 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 Albertsons Companies and SFCCN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Albertsons Companies and SFCCN 53 13 MAY 28, you can compare the effects of market volatilities on Albertsons Companies and SFCCN 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 Albertsons Companies with a short position of SFCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albertsons Companies and SFCCN.

Diversification Opportunities for Albertsons Companies and SFCCN

-0.38

Correlation Coefficient

Albertsons Companies  SFCCN

Very good diversification

The 3 months correlation between Albertsons and SFCCN is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and SFCCN 53 13 MAY 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFCCN 53 13 and Albertsons Companies 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 Albertsons Companies are associated (or correlated) with SFCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFCCN 53 13 has no effect on the direction of Albertsons Companies i.e., Albertsons Companies and SFCCN go up and down completely randomly.

Pair Corralation between Albertsons Companies and SFCCN

Considering the 90-day investment horizon Albertsons Companies is expected to generate 1.21 times less return on investment than SFCCN. In addition to that, Albertsons Companies is 3.64 times more volatile than SFCCN 53 13 MAY 28. It trades about 0.22 of its total potential returns per unit of risk. SFCCN 53 13 MAY 28 is currently generating about 0.95 per unit of volatility. If you would invest  9,743  in SFCCN 53 13 MAY 28 on December 5, 2024 and sell it today you would earn a total of  160.00  from holding SFCCN 53 13 MAY 28 or generate 1.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	23.81%
Values	Daily Returns

Albertsons Companies  vs.  SFCCN 53 13 MAY 28

Albertsons Companies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Albertsons Companies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating fundamental indicators, Albertsons Companies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

SFCCN 53 13

Risk-Adjusted Performance

Very Weak

Over the last 90 days SFCCN 53 13 MAY 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SFCCN is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Albertsons Companies and SFCCN

The main advantage of trading using opposite Albertsons Companies and SFCCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albertsons Companies position performs unexpectedly, SFCCN 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 SFCCN will offset losses from the drop in SFCCN's long position.

The idea behind Albertsons Companies and SFCCN 53 13 MAY 28 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.