Correlation Between Dow Jones and SpartanNash
Can any of the company-specific risk be diversified away by investing in both Dow Jones and SpartanNash 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 Dow Jones and SpartanNash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and SpartanNash Co, you can compare the effects of market volatilities on Dow Jones and SpartanNash 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 Dow Jones with a short position of SpartanNash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and SpartanNash.
Diversification Opportunities for Dow Jones and SpartanNash
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dow and SpartanNash is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and SpartanNash Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpartanNash and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with SpartanNash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpartanNash has no effect on the direction of Dow Jones i.e., Dow Jones and SpartanNash go up and down completely randomly.
Pair Corralation between Dow Jones and SpartanNash
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.99 times more return on investment than SpartanNash. However, Dow Jones is 1.99 times more volatile than SpartanNash Co. It trades about 0.15 of its potential returns per unit of risk. SpartanNash Co is currently generating about 0.14 per unit of risk. If you would invest 4,424,076 in Dow Jones Industrial on July 8, 2025 and sell it today you would earn a total of 251,752 from holding Dow Jones Industrial or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.38% |
| Values | Daily Returns |
Dow Jones Industrial vs. SpartanNash Co
Performance |
| Timeline |
Dow Jones and SpartanNash Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
SpartanNash Co
Pair trading matchups for SpartanNash
Pair Trading with Dow Jones and SpartanNash
The main advantage of trading using opposite Dow Jones and SpartanNash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, SpartanNash 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 SpartanNash will offset losses from the drop in SpartanNash's long position.| Dow Jones vs. Vinci Partners Investments | Dow Jones vs. PennyMac Mortgage Investment | Dow Jones vs. Scottish Mortgage Investment | Dow Jones vs. The Hanover Insurance |
| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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