Correlation Between Target and SUPERVALU INC
Can any of the company-specific risk be diversified away by investing in both Target and SUPERVALU INC 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 Target and SUPERVALU INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Target and SUPERVALU INC, you can compare the effects of market volatilities on Target and SUPERVALU INC 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 Target with a short position of SUPERVALU INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Target and SUPERVALU INC.
Diversification Opportunities for Target and SUPERVALU INC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Target and SUPERVALU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Target and SUPERVALU INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPERVALU INC and Target 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 Target are associated (or correlated) with SUPERVALU INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPERVALU INC has no effect on the direction of Target i.e., Target and SUPERVALU INC go up and down completely randomly.
Pair Corralation between Target and SUPERVALU INC
If you would invest 15,199 in Target on December 29, 2023 and sell it today you would earn a total of 2,268 from holding Target or generate 14.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Target vs. SUPERVALU INC
Performance |
Timeline |
Target |
SUPERVALU INC |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Target and SUPERVALU INC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Target and SUPERVALU INC
The main advantage of trading using opposite Target and SUPERVALU INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Target position performs unexpectedly, SUPERVALU INC 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 SUPERVALU INC will offset losses from the drop in SUPERVALU INC's long position.Target vs. Dollar General | Target vs. Grocery Outlet Holding | Target vs. Trxade Group | Target vs. Davis Commodities Limited |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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