Correlation Between Academy Sports and MQGAU

Can any of the company-specific risk be diversified away by investing in both Academy Sports and MQGAU 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 MQGAU 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 MQGAU 2691 23 JUN 32, you can compare the effects of market volatilities on Academy Sports and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and MQGAU.

Diversification Opportunities for Academy Sports and MQGAU

-0.41

Correlation Coefficient

Academy Sports  MQGAU

Very good diversification

The 3 months correlation between Academy and MQGAU is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and MQGAU 2691 23 JUN 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 2691 23 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 2691 23 has no effect on the direction of Academy Sports i.e., Academy Sports and MQGAU go up and down completely randomly.

Pair Corralation between Academy Sports and MQGAU

Considering the 90-day investment horizon Academy Sports Outdoors is expected to under-perform the MQGAU. In addition to that, Academy Sports is 2.41 times more volatile than MQGAU 2691 23 JUN 32. It trades about -0.2 of its total potential returns per unit of risk. MQGAU 2691 23 JUN 32 is currently generating about -0.25 per unit of volatility. If you would invest  8,497  in MQGAU 2691 23 JUN 32 on October 26, 2024 and sell it today you would lose (266.00) from holding MQGAU 2691 23 JUN 32 or give up 3.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	66.67%
Values	Daily Returns

Academy Sports Outdoors  vs.  MQGAU 2691 23 JUN 32

Academy Sports Outdoors

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Academy Sports Outdoors are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Academy Sports may actually be approaching a critical reversion point that can send shares even higher in February 2025.

MQGAU 2691 23

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MQGAU 2691 23 JUN 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for MQGAU 2691 23 JUN 32 investors.

Pair Trading with Academy Sports and MQGAU

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

The idea behind Academy Sports Outdoors and MQGAU 2691 23 JUN 32 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.