Correlation Between Ollies Bargain and Boot Barn

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

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

Diversification Opportunities for Ollies Bargain and Boot Barn

0.45

Correlation Coefficient

Ollies Bargain  Boot Barn

Very weak diversification

The 3 months correlation between Ollies and Boot is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ollies Bargain Outlet 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 Ollies Bargain 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 Ollies Bargain Outlet 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 Ollies Bargain i.e., Ollies Bargain and Boot Barn go up and down completely randomly.

Pair Corralation between Ollies Bargain and Boot Barn

Given the investment horizon of 90 days Ollies Bargain Outlet is expected to generate 0.94 times more return on investment than Boot Barn. However, Ollies Bargain Outlet is 1.06 times less risky than Boot Barn. It trades about 0.12 of its potential returns per unit of risk. Boot Barn Holdings is currently generating about 0.06 per unit of risk. If you would invest  11,303  in Ollies Bargain Outlet on May 28, 2025 and sell it today you would earn a total of  1,713  from holding Ollies Bargain Outlet or generate 15.16% return on investment over 90 days.

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

Ollies Bargain Outlet  vs.  Boot Barn Holdings

Ollies Bargain Outlet

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Ollies Bargain Outlet are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile essential indicators, Ollies Bargain demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Boot Barn Holdings

Risk-Adjusted Performance

Soft

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 Ollies Bargain and Boot Barn

The main advantage of trading using opposite Ollies Bargain and Boot Barn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ollies Bargain 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 Ollies Bargain Outlet 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.