Correlation Between Academy Sports and Freeport
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By analyzing existing cross correlation between Academy Sports Outdoors and Freeport McMoRan 54 percent, you can compare the effects of market volatilities on Academy Sports and Freeport 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 Academy Sports with a short position of Freeport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Freeport.
Diversification Opportunities for Academy Sports and Freeport
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Academy and Freeport is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Freeport McMoRan 54 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freeport McMoRan and Academy Sports 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 Academy Sports Outdoors are associated (or correlated) with Freeport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freeport McMoRan has no effect on the direction of Academy Sports i.e., Academy Sports and Freeport go up and down completely randomly.
Pair Corralation between Academy Sports and Freeport
Considering the 90-day investment horizon Academy Sports Outdoors is expected to generate 5.06 times more return on investment than Freeport. However, Academy Sports is 5.06 times more volatile than Freeport McMoRan 54 percent. It trades about 0.4 of its potential returns per unit of risk. Freeport McMoRan 54 percent is currently generating about -0.39 per unit of risk. If you would invest 4,934 in Academy Sports Outdoors on September 25, 2024 and sell it today you would earn a total of 863.00 from holding Academy Sports Outdoors or generate 17.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Academy Sports Outdoors vs. Freeport McMoRan 54 percent
Performance |
Timeline |
Academy Sports Outdoors |
Freeport McMoRan |
Academy Sports and Freeport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Academy Sports and Freeport
The main advantage of trading using opposite Academy Sports and Freeport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports position performs unexpectedly, Freeport 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 Freeport will offset losses from the drop in Freeport's long position.Academy Sports vs. Macys Inc | Academy Sports vs. Wayfair | Academy Sports vs. 1StdibsCom | Academy Sports vs. AutoNation |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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