Correlation Between Carters and Boot Barn
Can any of the company-specific risk be diversified away by investing in both Carters and Boot Barn 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 Carters and Boot Barn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carters and Boot Barn Holdings, you can compare the effects of market volatilities on Carters and Boot Barn 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 Carters with a short position of Boot Barn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carters and Boot Barn.
Diversification Opportunities for Carters and Boot Barn
Excellent diversification
The 3 months correlation between Carters and Boot is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Carters and Boot Barn Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boot Barn Holdings and Carters 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 Carters are associated (or correlated) with Boot Barn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boot Barn Holdings has no effect on the direction of Carters i.e., Carters and Boot Barn go up and down completely randomly.
Pair Corralation between Carters and Boot Barn
Considering the 90-day investment horizon Carters is expected to under-perform the Boot Barn. In addition to that, Carters is 2.59 times more volatile than Boot Barn Holdings. It trades about -0.11 of its total potential returns per unit of risk. Boot Barn Holdings is currently generating about 0.3 per unit of volatility. If you would invest 15,114 in Boot Barn Holdings on April 26, 2025 and sell it today you would earn a total of 2,148 from holding Boot Barn Holdings or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carters vs. Boot Barn Holdings
Performance |
| Timeline |
| Carters |
| Boot Barn Holdings |
Carters and Boot Barn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carters and Boot Barn
The main advantage of trading using opposite Carters and Boot Barn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carters position performs unexpectedly, Boot Barn 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 Boot Barn will offset losses from the drop in Boot Barn's long position.| Carters vs. Childrens Place | Carters vs. Gildan Activewear | Carters vs. Oxford Industries | Carters vs. Columbia Sportswear |
| Boot Barn vs. Burlington Stores | Boot Barn vs. Buckle Inc | Boot Barn vs. Carters | Boot Barn vs. Citi Trends |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |