Correlation Between SUPERVALU INC and Target
Can any of the company-specific risk be diversified away by investing in both SUPERVALU INC and Target 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 Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUPERVALU INC and Target, you can compare the effects of market volatilities on SUPERVALU INC and Target 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 Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPERVALU INC and Target.
Diversification Opportunities for SUPERVALU INC and Target
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SUPERVALU and Target is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SUPERVALU INC and Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target 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 Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target has no effect on the direction of SUPERVALU INC i.e., SUPERVALU INC and Target go up and down completely randomly.
Pair Corralation between SUPERVALU INC and Target
If you would invest (100.00) in SUPERVALU INC on January 26, 2024 and sell it today you would earn a total of 100.00 from holding SUPERVALU INC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SUPERVALU INC vs. Target
Performance |
| Timeline |
| SUPERVALU INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Target |
SUPERVALU INC and Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUPERVALU INC and Target
The main advantage of trading using opposite SUPERVALU INC and Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPERVALU INC position performs unexpectedly, Target 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 Target will offset losses from the drop in Target's long position.| SUPERVALU INC vs. Willamette Valley Vineyards | SUPERVALU INC vs. Perseus Mining Limited | SUPERVALU INC vs. Sandstorm Gold Ltd | SUPERVALU INC vs. Westrock Coffee |
| Target vs. Costco Wholesale Corp | Target vs. BJs Wholesale Club | Target vs. Dollar Tree | Target vs. Dollar General |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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