Correlation Between Albertsons Companies and Sadot

Can any of the company-specific risk be diversified away by investing in both Albertsons Companies and Sadot 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 Albertsons Companies and Sadot into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Albertsons Companies and Sadot Group, you can compare the effects of market volatilities on Albertsons Companies and Sadot 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 Albertsons Companies with a short position of Sadot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albertsons Companies and Sadot.

Diversification Opportunities for Albertsons Companies and Sadot

0.03

Correlation Coefficient

Albertsons Companies  Sadot

Significant diversification

The 3 months correlation between Albertsons and Sadot is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and Sadot Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sadot Group and Albertsons Companies 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 Albertsons Companies are associated (or correlated) with Sadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sadot Group has no effect on the direction of Albertsons Companies i.e., Albertsons Companies and Sadot go up and down completely randomly.

Pair Corralation between Albertsons Companies and Sadot

Considering the 90-day investment horizon Albertsons Companies is expected to generate 0.18 times more return on investment than Sadot. However, Albertsons Companies is 5.44 times less risky than Sadot. It trades about -0.1 of its potential returns per unit of risk. Sadot Group is currently generating about -0.06 per unit of risk. If you would invest  2,182  in Albertsons Companies on April 30, 2025 and sell it today you would lose (213.00) from holding Albertsons Companies or give up 9.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Albertsons Companies  vs.  Sadot Group

Albertsons Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Albertsons Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Sadot Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sadot Group 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 basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Albertsons Companies and Sadot

The main advantage of trading using opposite Albertsons Companies and Sadot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albertsons Companies position performs unexpectedly, Sadot 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 Sadot will offset losses from the drop in Sadot's long position.

The idea behind Albertsons Companies and Sadot Group 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.