Correlation Between Duluth Holdings and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and Ainsworth Game 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 Duluth Holdings and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and Ainsworth Game Technology, you can compare the effects of market volatilities on Duluth Holdings and Ainsworth Game 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 Duluth Holdings with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Ainsworth Game.
Diversification Opportunities for Duluth Holdings and Ainsworth Game
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duluth and Ainsworth is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game Technology and Duluth Holdings 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 Duluth Holdings are associated (or correlated) with Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and Ainsworth Game go up and down completely randomly.
Pair Corralation between Duluth Holdings and Ainsworth Game
Given the investment horizon of 90 days Duluth Holdings is expected to under-perform the Ainsworth Game. But the stock apears to be less risky and, when comparing its historical volatility, Duluth Holdings is 1.38 times less risky than Ainsworth Game. The stock trades about -0.13 of its potential returns per unit of risk. The Ainsworth Game Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Ainsworth Game Technology on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Ainsworth Game Technology or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duluth Holdings vs. Ainsworth Game Technology
Performance |
| Timeline |
| Duluth Holdings |
| Ainsworth Game Technology |
Duluth Holdings and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and Ainsworth Game
The main advantage of trading using opposite Duluth Holdings and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group | Ainsworth Game vs. Betmakers Technology Group |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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