Correlation Between Ross Stores and Caseys General
Can any of the company-specific risk be diversified away by investing in both Ross Stores and Caseys General 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 Ross Stores and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ross Stores and Caseys General Stores, you can compare the effects of market volatilities on Ross Stores and Caseys General 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 Ross Stores with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and Caseys General.
Diversification Opportunities for Ross Stores and Caseys General
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ross and Caseys is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and Ross Stores 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 Ross Stores are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Ross Stores i.e., Ross Stores and Caseys General go up and down completely randomly.
Pair Corralation between Ross Stores and Caseys General
Assuming the 90 days trading horizon Ross Stores is expected to generate 2.01 times less return on investment than Caseys General. In addition to that, Ross Stores is 1.05 times more volatile than Caseys General Stores. It trades about 0.07 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.16 per unit of volatility. If you would invest 33,753 in Caseys General Stores on September 10, 2024 and sell it today you would earn a total of 6,047 from holding Caseys General Stores or generate 17.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ross Stores vs. Caseys General Stores
Performance |
Timeline |
Ross Stores |
Caseys General Stores |
Ross Stores and Caseys General Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ross Stores and Caseys General
The main advantage of trading using opposite Ross Stores and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ross Stores position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.Ross Stores vs. Consolidated Communications Holdings | Ross Stores vs. Highlight Communications AG | Ross Stores vs. Spirent Communications plc | Ross Stores vs. Charter Communications |
Caseys General vs. Lifeway Foods | Caseys General vs. JD SPORTS FASH | Caseys General vs. CN MODERN DAIRY | Caseys General vs. Playtech plc |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |