Correlation Between Dillards Capital and Marks Spencer
Can any of the company-specific risk be diversified away by investing in both Dillards Capital and Marks Spencer 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 Capital and Marks Spencer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dillards Capital Trust and Marks Spencer Group, you can compare the effects of market volatilities on Dillards Capital and Marks Spencer 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 Capital with a short position of Marks Spencer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dillards Capital and Marks Spencer.
Diversification Opportunities for Dillards Capital and Marks Spencer
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dillards and Marks is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dillards Capital Trust and Marks Spencer Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marks Spencer Group and Dillards Capital 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 Capital Trust are associated (or correlated) with Marks Spencer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marks Spencer Group has no effect on the direction of Dillards Capital i.e., Dillards Capital and Marks Spencer go up and down completely randomly.
Pair Corralation between Dillards Capital and Marks Spencer
Considering the 90-day investment horizon Dillards Capital Trust is expected to generate 0.1 times more return on investment than Marks Spencer. However, Dillards Capital Trust is 10.46 times less risky than Marks Spencer. It trades about 0.38 of its potential returns per unit of risk. Marks Spencer Group is currently generating about -0.2 per unit of risk. If you would invest 2,534 in Dillards Capital Trust on November 2, 2024 and sell it today you would earn a total of 56.00 from holding Dillards Capital Trust or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dillards Capital Trust vs. Marks Spencer Group
Performance |
| Timeline |
| Dillards Capital Trust |
| Marks Spencer Group |
Dillards Capital and Marks Spencer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dillards Capital and Marks Spencer
The main advantage of trading using opposite Dillards Capital and Marks Spencer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dillards Capital position performs unexpectedly, Marks Spencer 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 Marks Spencer will offset losses from the drop in Marks Spencer's long position.| Dillards Capital vs. Prudential Financial 4125 | Dillards Capital vs. Credit Enhanced Corts | Dillards Capital vs. Strats Trust Cellular | Dillards Capital vs. Structured Products Corp |
| Marks Spencer vs. Kohls Corp | Marks Spencer vs. Nordstrom | Marks Spencer vs. Macys Inc | Marks Spencer vs. Dillards |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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