Correlation Between SPARTAN STORES and Ming Le

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

By analyzing existing cross correlation between SPARTAN STORES and Ming Le Sports, you can compare the effects of market volatilities on SPARTAN STORES and Ming Le 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 Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and Ming Le.

Diversification Opportunities for SPARTAN STORES and Ming Le

0.0

Correlation Coefficient

SPARTAN STORES  Ming Le

Pay attention - limited upside

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

Pair Corralation between SPARTAN STORES and Ming Le

If you would invest (100.00) in Ming Le Sports on October 26, 2024 and sell it today you would earn a total of  100.00  from holding Ming Le Sports 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

SPARTAN STORES  vs.  Ming Le Sports

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 latest unsteady performance, the Stock's forward-looking indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Ming Le Sports

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Ming Le Sports has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ming Le 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 Ming Le

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

The idea behind SPARTAN STORES and Ming Le Sports 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.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.