Correlation Between Arko Corp and Dicks Sporting
Can any of the company-specific risk be diversified away by investing in both Arko Corp and Dicks Sporting 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 Arko Corp and Dicks Sporting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arko Corp and Dicks Sporting Goods, you can compare the effects of market volatilities on Arko Corp and Dicks Sporting 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 Arko Corp with a short position of Dicks Sporting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arko Corp and Dicks Sporting.
Diversification Opportunities for Arko Corp and Dicks Sporting
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arko and Dicks is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Arko Corp and Dicks Sporting Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicks Sporting Goods and Arko Corp 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 Arko Corp are associated (or correlated) with Dicks Sporting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dicks Sporting Goods has no effect on the direction of Arko Corp i.e., Arko Corp and Dicks Sporting go up and down completely randomly.
Pair Corralation between Arko Corp and Dicks Sporting
Given the investment horizon of 90 days Arko Corp is expected to generate 14.02 times less return on investment than Dicks Sporting. In addition to that, Arko Corp is 1.23 times more volatile than Dicks Sporting Goods. It trades about 0.0 of its total potential returns per unit of risk. Dicks Sporting Goods is currently generating about 0.09 per unit of volatility. If you would invest 13,523 in Dicks Sporting Goods on August 27, 2024 and sell it today you would earn a total of 7,493 from holding Dicks Sporting Goods or generate 55.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arko Corp vs. Dicks Sporting Goods
Performance |
| Timeline |
| Arko Corp |
| Dicks Sporting Goods |
Arko Corp and Dicks Sporting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arko Corp and Dicks Sporting
The main advantage of trading using opposite Arko Corp and Dicks Sporting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arko Corp position performs unexpectedly, Dicks Sporting 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 Dicks Sporting will offset losses from the drop in Dicks Sporting's long position.| Arko Corp vs. Murphy USA | Arko Corp vs. National Vision Holdings | Arko Corp vs. ODP Corp | Arko Corp vs. Genuine Parts Co |
| Dicks Sporting vs. Oriental Culture Holding | Dicks Sporting vs. Hour Loop | Dicks Sporting vs. Qurate Retail Series | Dicks Sporting vs. Emerge Commerce |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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