Correlation Between Sprouts Farmers and Bim Birlesik

Can any of the company-specific risk be diversified away by investing in both Sprouts Farmers and Bim Birlesik 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 Sprouts Farmers and Bim Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sprouts Farmers Market and Bim Birlesik Magazalar, you can compare the effects of market volatilities on Sprouts Farmers and Bim Birlesik 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 Sprouts Farmers with a short position of Bim Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprouts Farmers and Bim Birlesik.

Diversification Opportunities for Sprouts Farmers and Bim Birlesik

-0.86

Correlation Coefficient

Sprouts Farmers  Bim Birlesik

Pay attention - limited upside

The 3 months correlation between Sprouts and Bim is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sprouts Farmers Market and Bim Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bim Birlesik Magazalar and Sprouts Farmers 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 Sprouts Farmers Market are associated (or correlated) with Bim Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bim Birlesik Magazalar has no effect on the direction of Sprouts Farmers i.e., Sprouts Farmers and Bim Birlesik go up and down completely randomly.

Pair Corralation between Sprouts Farmers and Bim Birlesik

Considering the 90-day investment horizon Sprouts Farmers Market is expected to under-perform the Bim Birlesik. In addition to that, Sprouts Farmers is 24.8 times more volatile than Bim Birlesik Magazalar. It trades about -0.21 of its total potential returns per unit of risk. Bim Birlesik Magazalar is currently generating about 0.18 per unit of volatility. If you would invest  1,130  in Bim Birlesik Magazalar on August 15, 2025 and sell it today you would earn a total of  20.00  from holding Bim Birlesik Magazalar or generate 1.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Sprouts Farmers Market  vs.  Bim Birlesik Magazalar

Sprouts Farmers Market

Risk-Adjusted Performance

Weakest

Over the last 90 days Sprouts Farmers Market has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Bim Birlesik Magazalar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bim Birlesik Magazalar are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Bim Birlesik is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sprouts Farmers and Bim Birlesik

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

The idea behind Sprouts Farmers Market and Bim Birlesik Magazalar 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.