Correlation Between Academy Sports and INTNED

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

By analyzing existing cross correlation between Academy Sports Outdoors and INTNED 4625 06 JAN 26, you can compare the effects of market volatilities on Academy Sports and INTNED 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 INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and INTNED.

Diversification Opportunities for Academy Sports and INTNED

-0.15

Correlation Coefficient

Academy Sports  INTNED

Good diversification

The 3 months correlation between Academy and INTNED is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and INTNED 4625 06 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 4625 06 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 INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 4625 06 has no effect on the direction of Academy Sports i.e., Academy Sports and INTNED go up and down completely randomly.

Pair Corralation between Academy Sports and INTNED

Considering the 90-day investment horizon Academy Sports Outdoors is expected to under-perform the INTNED. In addition to that, Academy Sports is 17.22 times more volatile than INTNED 4625 06 JAN 26. It trades about -0.13 of its total potential returns per unit of risk. INTNED 4625 06 JAN 26 is currently generating about -0.09 per unit of volatility. If you would invest  9,991  in INTNED 4625 06 JAN 26 on December 24, 2024 and sell it today you would lose (61.00) from holding INTNED 4625 06 JAN 26 or give up 0.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.33%
Values	Daily Returns

Academy Sports Outdoors  vs.  INTNED 4625 06 JAN 26

Academy Sports Outdoors

Risk-Adjusted Performance

Very Weak

Over the last 90 days Academy Sports Outdoors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

INTNED 4625 06

Risk-Adjusted Performance

Very Weak

Over the last 90 days INTNED 4625 06 JAN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Academy Sports and INTNED

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

The idea behind Academy Sports Outdoors and INTNED 4625 06 JAN 26 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.