Correlation Between Dillards and Almacenes Xito
Can any of the company-specific risk be diversified away by investing in both Dillards and Almacenes Xito 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 Dillards and Almacenes Xito into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dillards and Almacenes xito SA, you can compare the effects of market volatilities on Dillards and Almacenes Xito 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 Dillards with a short position of Almacenes Xito. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dillards and Almacenes Xito.
Diversification Opportunities for Dillards and Almacenes Xito
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dillards and Almacenes is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dillards and Almacenes xito SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almacenes xito SA and Dillards 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 Dillards are associated (or correlated) with Almacenes Xito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almacenes xito SA has no effect on the direction of Dillards i.e., Dillards and Almacenes Xito go up and down completely randomly.
Pair Corralation between Dillards and Almacenes Xito
Considering the 90-day investment horizon Dillards is expected to generate 0.88 times more return on investment than Almacenes Xito. However, Dillards is 1.13 times less risky than Almacenes Xito. It trades about 0.06 of its potential returns per unit of risk. Almacenes xito SA is currently generating about -0.03 per unit of risk. If you would invest 29,685 in Dillards on September 12, 2024 and sell it today you would earn a total of 16,855 from holding Dillards or generate 56.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.18% |
| Values | Daily Returns |
Dillards vs. Almacenes xito SA
Performance |
| Timeline |
| Dillards |
| Almacenes xito SA |
Dillards and Almacenes Xito Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dillards and Almacenes Xito
The main advantage of trading using opposite Dillards and Almacenes Xito positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dillards position performs unexpectedly, Almacenes Xito 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 Almacenes Xito will offset losses from the drop in Almacenes Xito's long position.| Dillards vs. Macys Inc | Dillards vs. Kohls Corp | Dillards vs. Marks Spencer Group | Dillards vs. Marks and Spencer |
| Almacenes Xito vs. Dillards | Almacenes Xito vs. Nordstrom | Almacenes Xito vs. Kohls Corp | Almacenes Xito vs. EZCORP Inc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |