Correlation Between Build A and Conns

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

By analyzing existing cross correlation between Build A Bear Workshop and Conns Inc, you can compare the effects of market volatilities on Build A and Conns 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 Build A with a short position of Conns. Check out your portfolio center. Please also check ongoing floating volatility patterns of Build A and Conns.

Diversification Opportunities for Build A and Conns

0.0

Correlation Coefficient

Build A  Conns

Pay attention - limited upside

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

Pair Corralation between Build A and Conns

If you would invest  5,273  in Build A Bear Workshop on July 2, 2025 and sell it today you would earn a total of  1,806  from holding Build A Bear Workshop or generate 34.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Build A Bear Workshop  vs.  Conns Inc

Build A Bear

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Build A Bear Workshop are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent fundamental drivers, Build A showed solid returns over the last few months and may actually be approaching a breakup point.

Conns Inc

Risk-Adjusted Performance

Weakest

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

Pair Trading with Build A and Conns

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

The idea behind Build A Bear Workshop and Conns 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.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.