Correlation Between Container Store and Bed Bath
Can any of the company-specific risk be diversified away by investing in both Container Store and Bed Bath 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 Container Store and Bed Bath into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Container Store Group and Bed Bath Beyond, you can compare the effects of market volatilities on Container Store and Bed Bath 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 Container Store with a short position of Bed Bath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Container Store and Bed Bath.
Diversification Opportunities for Container Store and Bed Bath
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Container and Bed is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Container Store Group and Bed Bath Beyond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bed Bath Beyond and Container Store 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 Container Store Group are associated (or correlated) with Bed Bath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bed Bath Beyond has no effect on the direction of Container Store i.e., Container Store and Bed Bath go up and down completely randomly.
Pair Corralation between Container Store and Bed Bath
If you would invest 30.00 in Bed Bath Beyond on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Bed Bath Beyond or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Container Store Group vs. Bed Bath Beyond
Performance |
Timeline |
Container Store Group |
Bed Bath Beyond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Container Store and Bed Bath Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Container Store and Bed Bath
The main advantage of trading using opposite Container Store and Bed Bath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Container Store position performs unexpectedly, Bed Bath 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 Bed Bath will offset losses from the drop in Bed Bath's long position.Container Store vs. OReilly Automotive | Container Store vs. AutoZone | Container Store vs. Genuine Parts Co | Container Store vs. Williams Sonoma |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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