Correlation Between Alimentation Couchen and Academy Sports
Can any of the company-specific risk be diversified away by investing in both Alimentation Couchen and Academy Sports 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 Alimentation Couchen and Academy Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alimentation Couchen Tard and Academy Sports Outdoors, you can compare the effects of market volatilities on Alimentation Couchen and Academy Sports 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 Alimentation Couchen with a short position of Academy Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimentation Couchen and Academy Sports.
Diversification Opportunities for Alimentation Couchen and Academy Sports
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alimentation and Academy is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Alimentation Couchen Tard and Academy Sports Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports Outdoors and Alimentation Couchen 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 Alimentation Couchen Tard are associated (or correlated) with Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports Outdoors has no effect on the direction of Alimentation Couchen i.e., Alimentation Couchen and Academy Sports go up and down completely randomly.
Pair Corralation between Alimentation Couchen and Academy Sports
Assuming the 90 days trading horizon Alimentation Couchen Tard is expected to generate 0.58 times more return on investment than Academy Sports. However, Alimentation Couchen Tard is 1.73 times less risky than Academy Sports. It trades about 0.01 of its potential returns per unit of risk. Academy Sports Outdoors is currently generating about -0.12 per unit of risk. If you would invest 7,009 in Alimentation Couchen Tard on August 13, 2025 and sell it today you would earn a total of 31.00 from holding Alimentation Couchen Tard or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Alimentation Couchen Tard vs. Academy Sports Outdoors
Performance |
| Timeline |
| Alimentation Couchen Tard |
| Academy Sports Outdoors |
Alimentation Couchen and Academy Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimentation Couchen and Academy Sports
The main advantage of trading using opposite Alimentation Couchen and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimentation Couchen position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.| Alimentation Couchen vs. Restaurant Brands International | Alimentation Couchen vs. Canadian Tire | Alimentation Couchen vs. Canadian Tire | Alimentation Couchen vs. BMTC Group |
| Academy Sports vs. RH | Academy Sports vs. Advance Auto Parts | Academy Sports vs. Abercrombie Fitch | Academy Sports vs. MI Homes |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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