Correlation Between SUPERVALU INC and Barnes Noble

Can any of the company-specific risk be diversified away by investing in both SUPERVALU INC and Barnes Noble 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 SUPERVALU INC and Barnes Noble into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for SUPERVALU INC and Barnes Noble

0.0

Correlation Coefficient

SUPERVALU INC  Barnes Noble

Pay attention - limited upside

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

Pair Corralation between SUPERVALU INC and Barnes Noble

If you would invest (100.00) in Barnes Noble on January 18, 2024 and sell it today you would earn a total of  100.00  from holding Barnes Noble or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SUPERVALU INC  vs.  Barnes Noble

SUPERVALU INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUPERVALU INC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SUPERVALU INC is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Barnes Noble

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barnes Noble has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Barnes Noble is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SUPERVALU INC and Barnes Noble

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

The idea behind SUPERVALU INC and Barnes Noble 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..