Correlation Between Cboe UK and Dollar Tree
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By analyzing existing cross correlation between Cboe UK Consumer and Dollar Tree, you can compare the effects of market volatilities on Cboe UK and Dollar Tree 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 Cboe UK with a short position of Dollar Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Dollar Tree.
Diversification Opportunities for Cboe UK and Dollar Tree
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cboe and Dollar is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Dollar Tree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar Tree and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Dollar Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar Tree has no effect on the direction of Cboe UK i.e., Cboe UK and Dollar Tree go up and down completely randomly.
Pair Corralation between Cboe UK and Dollar Tree
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.38 times more return on investment than Dollar Tree. However, Cboe UK Consumer is 2.66 times less risky than Dollar Tree. It trades about 0.07 of its potential returns per unit of risk. Dollar Tree is currently generating about -0.06 per unit of risk. If you would invest 2,553,193 in Cboe UK Consumer on August 31, 2024 and sell it today you would earn a total of 702,271 from holding Cboe UK Consumer or generate 27.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Cboe UK Consumer vs. Dollar Tree
Performance |
| Timeline |
Cboe UK and Dollar Tree Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Dollar Tree
Pair trading matchups for Dollar Tree
Pair Trading with Cboe UK and Dollar Tree
The main advantage of trading using opposite Cboe UK and Dollar Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Dollar Tree 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 Dollar Tree will offset losses from the drop in Dollar Tree's long position.| Cboe UK vs. Lendinvest PLC | Cboe UK vs. Monster Beverage Corp | Cboe UK vs. Cembra Money Bank | Cboe UK vs. UNIQA Insurance Group |
| Dollar Tree vs. Worldwide Healthcare Trust | Dollar Tree vs. Cardinal Health | Dollar Tree vs. Veolia Environnement VE | Dollar Tree vs. Primary Health Properties |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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