Correlation Between Dollar General and LQR House
Can any of the company-specific risk be diversified away by investing in both Dollar General and LQR House 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 Dollar General and LQR House into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dollar General and LQR House Common, you can compare the effects of market volatilities on Dollar General and LQR House 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 Dollar General with a short position of LQR House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dollar General and LQR House.
Diversification Opportunities for Dollar General and LQR House
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dollar and LQR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dollar General and LQR House Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LQR House Common and Dollar General 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 Dollar General are associated (or correlated) with LQR House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LQR House Common has no effect on the direction of Dollar General i.e., Dollar General and LQR House go up and down completely randomly.
Pair Corralation between Dollar General and LQR House
If you would invest 7,271 in Dollar General on November 29, 2024 and sell it today you would earn a total of 587.00 from holding Dollar General or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Dollar General vs. LQR House Common
Performance |
| Timeline |
| Dollar General |
| LQR House Common |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Dollar General and LQR House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dollar General and LQR House
The main advantage of trading using opposite Dollar General and LQR House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dollar General position performs unexpectedly, LQR House 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 LQR House will offset losses from the drop in LQR House's long position.| Dollar General vs. BJs Wholesale Club | Dollar General vs. Costco Wholesale Corp | Dollar General vs. Walmart | Dollar General vs. Dollar Tree |
| LQR House vs. Genfit | LQR House vs. Radcom | LQR House vs. Modine Manufacturing | LQR House vs. Catalyst Pharmaceuticals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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