Correlation Between SUPERVALU INC and Spectrum Brands
Can any of the company-specific risk be diversified away by investing in both SUPERVALU INC and Spectrum Brands 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 Spectrum Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUPERVALU INC and Spectrum Brands Holdings, you can compare the effects of market volatilities on SUPERVALU INC and Spectrum Brands 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 Spectrum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPERVALU INC and Spectrum Brands.
Diversification Opportunities for SUPERVALU INC and Spectrum Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SUPERVALU and Spectrum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SUPERVALU INC and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands Holdings 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 Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of SUPERVALU INC i.e., SUPERVALU INC and Spectrum Brands go up and down completely randomly.
Pair Corralation between SUPERVALU INC and Spectrum Brands
If you would invest 7,846 in Spectrum Brands Holdings on February 2, 2024 and sell it today you would earn a total of 481.00 from holding Spectrum Brands Holdings or generate 6.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SUPERVALU INC vs. Spectrum Brands Holdings
Performance |
Timeline |
SUPERVALU INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Spectrum Brands Holdings |
SUPERVALU INC and Spectrum Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SUPERVALU INC and Spectrum Brands
The main advantage of trading using opposite SUPERVALU INC and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPERVALU INC position performs unexpectedly, Spectrum Brands 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 Spectrum Brands will offset losses from the drop in Spectrum Brands' long position.SUPERVALU INC vs. SL Green Realty | SUPERVALU INC vs. Enel Chile SA | SUPERVALU INC vs. Addus HomeCare | SUPERVALU INC vs. NRG Energy |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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