Correlation Between WICKES GROUP and LESLIES INC
Can any of the company-specific risk be diversified away by investing in both WICKES GROUP and LESLIES INC 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 WICKES GROUP and LESLIES INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WICKES GROUP PLC and LESLIES INC DL, you can compare the effects of market volatilities on WICKES GROUP and LESLIES INC 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 WICKES GROUP with a short position of LESLIES INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of WICKES GROUP and LESLIES INC.
Diversification Opportunities for WICKES GROUP and LESLIES INC
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WICKES and LESLIES is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding WICKES GROUP PLC and LESLIES INC DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LESLIES INC DL and WICKES GROUP 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 WICKES GROUP PLC are associated (or correlated) with LESLIES INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LESLIES INC DL has no effect on the direction of WICKES GROUP i.e., WICKES GROUP and LESLIES INC go up and down completely randomly.
Pair Corralation between WICKES GROUP and LESLIES INC
Assuming the 90 days horizon WICKES GROUP PLC is expected to under-perform the LESLIES INC. But the stock apears to be less risky and, when comparing its historical volatility, WICKES GROUP PLC is 3.51 times less risky than LESLIES INC. The stock trades about -0.27 of its potential returns per unit of risk. The LESLIES INC DL is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 260.00 in LESLIES INC DL on August 26, 2024 and sell it today you would earn a total of 2.00 from holding LESLIES INC DL or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WICKES GROUP PLC vs. LESLIES INC DL
Performance |
| Timeline |
| WICKES GROUP PLC |
| LESLIES INC DL |
WICKES GROUP and LESLIES INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WICKES GROUP and LESLIES INC
The main advantage of trading using opposite WICKES GROUP and LESLIES INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WICKES GROUP position performs unexpectedly, LESLIES INC 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 LESLIES INC will offset losses from the drop in LESLIES INC's long position.| WICKES GROUP vs. The Home Depot | WICKES GROUP vs. Superior Plus Corp | WICKES GROUP vs. NMI Holdings | WICKES GROUP vs. Origin Agritech |
| LESLIES INC vs. The Home Depot | LESLIES INC vs. WICKES GROUP PLC | LESLIES INC vs. Superior Plus Corp | LESLIES INC vs. NMI Holdings |
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 the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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