Correlation Between 020002AJ0 and Academy Sports

Can any of the company-specific risk be diversified away by investing in both 020002AJ0 and Academy Sports 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 020002AJ0 and Academy Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ALL 69 15 MAY 38 and Academy Sports Outdoors, you can compare the effects of market volatilities on 020002AJ0 and Academy Sports 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 020002AJ0 with a short position of Academy Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of 020002AJ0 and Academy Sports.

Diversification Opportunities for 020002AJ0 and Academy Sports

0.51

Correlation Coefficient

020002AJ0  Academy Sports

Very weak diversification

The 3 months correlation between 020002AJ0 and Academy is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding ALL 69 15 MAY 38 and Academy Sports Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports Outdoors and 020002AJ0 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 ALL 69 15 MAY 38 are associated (or correlated) with Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports Outdoors has no effect on the direction of 020002AJ0 i.e., 020002AJ0 and Academy Sports go up and down completely randomly.

Pair Corralation between 020002AJ0 and Academy Sports

Assuming the 90 days trading horizon ALL 69 15 MAY 38 is expected to generate 0.47 times more return on investment than Academy Sports. However, ALL 69 15 MAY 38 is 2.14 times less risky than Academy Sports. It trades about 0.04 of its potential returns per unit of risk. Academy Sports Outdoors is currently generating about -0.12 per unit of risk. If you would invest  11,443  in ALL 69 15 MAY 38 on December 25, 2024 and sell it today you would earn a total of  183.00  from holding ALL 69 15 MAY 38 or generate 1.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	63.33%
Values	Daily Returns

ALL 69 15 MAY 38  vs.  Academy Sports Outdoors

ALL 69 15

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ALL 69 15 MAY 38 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 020002AJ0 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Academy Sports Outdoors

Risk-Adjusted Performance

Very Weak

Over the last 90 days Academy Sports Outdoors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with 020002AJ0 and Academy Sports

The main advantage of trading using opposite 020002AJ0 and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 020002AJ0 position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.

The idea behind ALL 69 15 MAY 38 and Academy Sports Outdoors 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.