Correlation Between Big Lots and Intrum AB
Can any of the company-specific risk be diversified away by investing in both Big Lots and Intrum AB 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 Big Lots and Intrum AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Lots and Intrum AB, you can compare the effects of market volatilities on Big Lots and Intrum AB 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 Big Lots with a short position of Intrum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Lots and Intrum AB.
Diversification Opportunities for Big Lots and Intrum AB
Poor diversification
The 3 months correlation between Big and Intrum is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Big Lots and Intrum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrum AB and Big Lots 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 Big Lots are associated (or correlated) with Intrum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrum AB has no effect on the direction of Big Lots i.e., Big Lots and Intrum AB go up and down completely randomly.
Pair Corralation between Big Lots and Intrum AB
Assuming the 90 days trading horizon Big Lots is expected to generate 130.63 times more return on investment than Intrum AB. However, Big Lots is 130.63 times more volatile than Intrum AB. It trades about 0.3 of its potential returns per unit of risk. Intrum AB is currently generating about -0.17 per unit of risk. If you would invest 1.00 in Big Lots on July 17, 2025 and sell it today you would lose (0.97) from holding Big Lots or give up 97.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 12.5% |
| Values | Daily Returns |
Big Lots vs. Intrum AB
Performance |
| Timeline |
| Big Lots |
Risk-Adjusted Performance
Solid
Weak | Strong |
| Intrum AB |
Big Lots and Intrum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Lots and Intrum AB
The main advantage of trading using opposite Big Lots and Intrum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Lots position performs unexpectedly, Intrum AB 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 Intrum AB will offset losses from the drop in Intrum AB's long position.| Big Lots vs. Toyota Motor Corp | Big Lots vs. SoftBank Group Corp | Big Lots vs. Nintendo Co | Big Lots vs. Intuitive Surgical |
| Intrum AB vs. Ryanair Holdings plc | Intrum AB vs. Wizz Air Holdings | Intrum AB vs. Innovative Industrial Properties | Intrum AB vs. Delta Air Lines |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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