Correlation Between AMCON Distributing and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Dolphin Entertainment 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 AMCON Distributing and Dolphin Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Dolphin Entertainment, you can compare the effects of market volatilities on AMCON Distributing and Dolphin Entertainment 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 AMCON Distributing with a short position of Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Dolphin Entertainment.
Diversification Opportunities for AMCON Distributing and Dolphin Entertainment
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMCON and Dolphin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment and AMCON Distributing 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 AMCON Distributing are associated (or correlated) with Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between AMCON Distributing and Dolphin Entertainment
Considering the 90-day investment horizon AMCON Distributing is expected to generate 1.29 times more return on investment than Dolphin Entertainment. However, AMCON Distributing is 1.29 times more volatile than Dolphin Entertainment. It trades about 0.12 of its potential returns per unit of risk. Dolphin Entertainment is currently generating about 0.09 per unit of risk. If you would invest 11,886 in AMCON Distributing on November 28, 2024 and sell it today you would earn a total of 1,515 from holding AMCON Distributing or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. Dolphin Entertainment
Performance |
| Timeline |
| AMCON Distributing |
| Dolphin Entertainment |
AMCON Distributing and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Dolphin Entertainment
The main advantage of trading using opposite AMCON Distributing and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Dolphin Entertainment 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment's long position.| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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