Correlation Between AERWINS Technologies and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both AERWINS Technologies and Duluth Holdings 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 AERWINS Technologies and Duluth Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AERWINS Technologies and Duluth Holdings, you can compare the effects of market volatilities on AERWINS Technologies and Duluth Holdings 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 AERWINS Technologies with a short position of Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AERWINS Technologies and Duluth Holdings.
Diversification Opportunities for AERWINS Technologies and Duluth Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between AERWINS and Duluth is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding AERWINS Technologies and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings and AERWINS Technologies 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 AERWINS Technologies are associated (or correlated) with Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of AERWINS Technologies i.e., AERWINS Technologies and Duluth Holdings go up and down completely randomly.
Pair Corralation between AERWINS Technologies and Duluth Holdings
Assuming the 90 days horizon AERWINS Technologies is expected to generate 13.52 times more return on investment than Duluth Holdings. However, AERWINS Technologies is 13.52 times more volatile than Duluth Holdings. It trades about 0.05 of its potential returns per unit of risk. Duluth Holdings is currently generating about -0.01 per unit of risk. If you would invest 2.19 in AERWINS Technologies on September 3, 2024 and sell it today you would lose (1.61) from holding AERWINS Technologies or give up 73.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.29% |
| Values | Daily Returns |
AERWINS Technologies vs. Duluth Holdings
Performance |
| Timeline |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Duluth Holdings |
AERWINS Technologies and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AERWINS Technologies and Duluth Holdings
The main advantage of trading using opposite AERWINS Technologies and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AERWINS Technologies position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' long position.| AERWINS Technologies vs. Cardinal Health | AERWINS Technologies vs. Valneva SE ADR | AERWINS Technologies vs. Analog Devices | AERWINS Technologies vs. Sea |
| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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