Correlation Between Suburban Propane and Countrywide Financial
Can any of the company-specific risk be diversified away by investing in both Suburban Propane and Countrywide Financial 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 Suburban Propane and Countrywide Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suburban Propane Partners and Countrywide Financial Corp, you can compare the effects of market volatilities on Suburban Propane and Countrywide Financial 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 Suburban Propane with a short position of Countrywide Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and Countrywide Financial.
Diversification Opportunities for Suburban Propane and Countrywide Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Suburban and Countrywide is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners and Countrywide Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Countrywide Financial and Suburban Propane 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 Suburban Propane Partners are associated (or correlated) with Countrywide Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Countrywide Financial has no effect on the direction of Suburban Propane i.e., Suburban Propane and Countrywide Financial go up and down completely randomly.
Pair Corralation between Suburban Propane and Countrywide Financial
If you would invest (100.00) in Countrywide Financial Corp on September 25, 2024 and sell it today you would earn a total of 100.00 from holding Countrywide Financial Corp or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Suburban Propane Partners vs. Countrywide Financial Corp
Performance |
Timeline |
Suburban Propane Partners |
Countrywide Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Suburban Propane and Countrywide Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Suburban Propane and Countrywide Financial
The main advantage of trading using opposite Suburban Propane and Countrywide Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane position performs unexpectedly, Countrywide Financial 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 Countrywide Financial will offset losses from the drop in Countrywide Financial's long position.Suburban Propane vs. NewJersey Resources | Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. Spire Inc |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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