Correlation Between SPARTAN STORES and CCC SA

Can any of the company-specific risk be diversified away by investing in both SPARTAN STORES and CCC SA 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 SPARTAN STORES and CCC SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SPARTAN STORES and CCC SA, you can compare the effects of market volatilities on SPARTAN STORES and CCC SA 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 SPARTAN STORES with a short position of CCC SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and CCC SA.

Diversification Opportunities for SPARTAN STORES and CCC SA

0.0

Correlation Coefficient

SPARTAN STORES  CCC SA

Pay attention - limited upside

The 3 months correlation between SPARTAN and CCC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPARTAN STORES and CCC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC SA and SPARTAN 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 SPARTAN STORES are associated (or correlated) with CCC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC SA has no effect on the direction of SPARTAN STORES i.e., SPARTAN STORES and CCC SA go up and down completely randomly.

Pair Corralation between SPARTAN STORES and CCC SA

If you would invest  0.00  in CCC SA on October 8, 2024 and sell it today you would earn a total of  0.00  from holding CCC SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

SPARTAN STORES  vs.  CCC SA

SPARTAN STORES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SPARTAN STORES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking indicators, SPARTAN STORES is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

CCC SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CCC SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CCC SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SPARTAN STORES and CCC SA

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

The idea behind SPARTAN STORES and CCC SA 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.