Correlation Between Big Lots and ALCO STORES

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Can any of the company-specific risk be diversified away by investing in both Big Lots and ALCO STORES 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 ALCO STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Lots and ALCO STORES INC, you can compare the effects of market volatilities on Big Lots and ALCO STORES 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 ALCO STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Lots and ALCO STORES.

Diversification Opportunities for Big Lots and ALCO STORES

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Big Lots and ALCSQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Big Lots and ALCO STORES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALCO STORES INC 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 ALCO STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALCO STORES INC has no effect on the direction of Big Lots i.e., Big Lots and ALCO STORES go up and down completely randomly.

Pair Corralation between Big Lots and ALCO STORES

If you would invest (100.00)  in ALCO STORES INC on March 28, 2022 and sell it today you would earn a total of  100.00  from holding ALCO STORES INC or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Big Lots  vs.  ALCO STORES INC

 Performance (%) 
      Timeline 
Big Lots 
Big Lots Performance
0 of 100
Over the last 90 days Big Lots has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in July 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0518
Payout Ratio
0.52
Last Split Factor
5:4
Forward Annual Dividend Rate
1.2
Dividend Date
2022-06-24
Ex Dividend Date
2022-06-09
Last Split Date
1997-06-25

Big Lots Price Channel

ALCO STORES INC 
ALCSQ Performance
0 of 100
Over the last 90 days ALCO STORES INC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, ALCO STORES is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the insiders.

Big Lots and ALCO STORES Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Big Lots and ALCO STORES

The main advantage of trading using opposite Big Lots and ALCO STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Lots position performs unexpectedly, ALCO STORES 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 ALCO STORES will offset losses from the drop in ALCO STORES's long position.
The idea behind Big Lots and ALCO STORES INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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