Correlation Between Atkore International and Boot Barn

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

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

Diversification Opportunities for Atkore International and Boot Barn

0.24

Correlation Coefficient

Atkore International  Boot Barn

Modest diversification

The 3 months correlation between Atkore and Boot is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Atkore International Group 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 Atkore International 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 Atkore International Group 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 Atkore International i.e., Atkore International and Boot Barn go up and down completely randomly.

Pair Corralation between Atkore International and Boot Barn

Given the investment horizon of 90 days Atkore International Group is expected to under-perform the Boot Barn. In addition to that, Atkore International is 1.75 times more volatile than Boot Barn Holdings. It trades about -0.03 of its total potential returns per unit of risk. Boot Barn Holdings is currently generating about 0.06 per unit of volatility. If you would invest  15,741  in Boot Barn Holdings on May 21, 2025 and sell it today you would earn a total of  987.00  from holding Boot Barn Holdings or generate 6.27% return on investment over 90 days.

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

Atkore International Group  vs.  Boot Barn Holdings

Atkore International

Risk-Adjusted Performance

Weakest

Over the last 90 days Atkore International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Boot Barn Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Boot Barn Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Boot Barn may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Atkore International and Boot Barn

The main advantage of trading using opposite Atkore International and Boot Barn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atkore International 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.

The idea behind Atkore International Group and Boot Barn Holdings 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.