Correlation Between Dollar General and WEBUY GLOBAL
Can any of the company-specific risk be diversified away by investing in both Dollar General and WEBUY GLOBAL 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 WEBUY GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dollar General and WEBUY GLOBAL LTD, you can compare the effects of market volatilities on Dollar General and WEBUY GLOBAL 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 WEBUY GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dollar General and WEBUY GLOBAL.
Diversification Opportunities for Dollar General and WEBUY GLOBAL
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dollar and WEBUY is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dollar General and WEBUY GLOBAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBUY GLOBAL LTD 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 WEBUY GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBUY GLOBAL LTD has no effect on the direction of Dollar General i.e., Dollar General and WEBUY GLOBAL go up and down completely randomly.
Pair Corralation between Dollar General and WEBUY GLOBAL
Allowing for the 90-day total investment horizon Dollar General is expected to generate 0.22 times more return on investment than WEBUY GLOBAL. However, Dollar General is 4.63 times less risky than WEBUY GLOBAL. It trades about -0.07 of its potential returns per unit of risk. WEBUY GLOBAL LTD is currently generating about -0.04 per unit of risk. If you would invest 23,741 in Dollar General on September 12, 2024 and sell it today you would lose (15,541) from holding Dollar General or give up 65.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 58.38% |
| Values | Daily Returns |
Dollar General vs. WEBUY GLOBAL LTD
Performance |
| Timeline |
| Dollar General |
| WEBUY GLOBAL LTD |
Dollar General and WEBUY GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dollar General and WEBUY GLOBAL
The main advantage of trading using opposite Dollar General and WEBUY GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dollar General position performs unexpectedly, WEBUY GLOBAL 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 WEBUY GLOBAL will offset losses from the drop in WEBUY GLOBAL's long position.| Dollar General vs. BJs Wholesale Club | Dollar General vs. Costco Wholesale Corp | Dollar General vs. Walmart | Dollar General vs. Dollar Tree |
| WEBUY GLOBAL vs. MOGU Inc | WEBUY GLOBAL vs. iPower Inc | WEBUY GLOBAL vs. Jeffs Brands | WEBUY GLOBAL vs. Kidpik Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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