Correlation Between Air Transport and SPARTAN STORES
Can any of the company-specific risk be diversified away by investing in both Air Transport and SPARTAN STORES 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 Air Transport and SPARTAN STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Transport Services and SPARTAN STORES, you can compare the effects of market volatilities on Air Transport and SPARTAN STORES 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 Air Transport with a short position of SPARTAN STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and SPARTAN STORES.
Diversification Opportunities for Air Transport and SPARTAN STORES
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and SPARTAN is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and SPARTAN STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPARTAN STORES and Air Transport 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 Air Transport Services are associated (or correlated) with SPARTAN STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPARTAN STORES has no effect on the direction of Air Transport i.e., Air Transport and SPARTAN STORES go up and down completely randomly.
Pair Corralation between Air Transport and SPARTAN STORES
Assuming the 90 days horizon Air Transport Services is expected to under-perform the SPARTAN STORES. But the stock apears to be less risky and, when comparing its historical volatility, Air Transport Services is 3.37 times less risky than SPARTAN STORES. The stock trades about -0.05 of its potential returns per unit of risk. The SPARTAN STORES is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,711 in SPARTAN STORES on December 28, 2024 and sell it today you would earn a total of 139.00 from holding SPARTAN STORES or generate 8.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Air Transport Services vs. SPARTAN STORES
Performance |
Timeline |
Air Transport Services |
SPARTAN STORES |
Air Transport and SPARTAN STORES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Air Transport and SPARTAN STORES
The main advantage of trading using opposite Air Transport and SPARTAN STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport position performs unexpectedly, SPARTAN STORES 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 SPARTAN STORES will offset losses from the drop in SPARTAN STORES's long position.Air Transport vs. CSSC Offshore Marine | Air Transport vs. WT OFFSHORE | Air Transport vs. Jacquet Metal Service | Air Transport vs. Chuangs China Investments |
SPARTAN STORES vs. Ming Le Sports | SPARTAN STORES vs. Sporting Clube de | SPARTAN STORES vs. CapitaLand Investment Limited | SPARTAN STORES vs. Investment Latour AB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |