Correlation Between Ingles Markets and 111
Can any of the company-specific risk be diversified away by investing in both Ingles Markets and 111 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 Ingles Markets and 111 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingles Markets Incorporated and 111 Inc, you can compare the effects of market volatilities on Ingles Markets and 111 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 Ingles Markets with a short position of 111. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingles Markets and 111.
Diversification Opportunities for Ingles Markets and 111
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ingles and 111 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ingles Markets Incorporated and 111 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 111 Inc and Ingles Markets 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 Ingles Markets Incorporated are associated (or correlated) with 111. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 111 Inc has no effect on the direction of Ingles Markets i.e., Ingles Markets and 111 go up and down completely randomly.
Pair Corralation between Ingles Markets and 111
Assuming the 90 days horizon Ingles Markets Incorporated is expected to under-perform the 111. But the stock apears to be less risky and, when comparing its historical volatility, Ingles Markets Incorporated is 3.41 times less risky than 111. The stock trades about -0.03 of its potential returns per unit of risk. The 111 Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 735.00 in 111 Inc on December 27, 2024 and sell it today you would earn a total of 273.00 from holding 111 Inc or generate 37.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ingles Markets Incorporated vs. 111 Inc
Performance |
Timeline |
Ingles Markets |
111 Inc |
Ingles Markets and 111 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ingles Markets and 111
The main advantage of trading using opposite Ingles Markets and 111 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingles Markets position performs unexpectedly, 111 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 111 will offset losses from the drop in 111's long position.Ingles Markets vs. Weis Markets | Ingles Markets vs. Natural Grocers by | Ingles Markets vs. Grocery Outlet Holding | Ingles Markets vs. Village Super Market |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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