Correlation Between Duluth Holdings and Buckle
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and Buckle 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 Buckle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and Buckle Inc, you can compare the effects of market volatilities on Duluth Holdings and Buckle 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 Buckle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Buckle.
Diversification Opportunities for Duluth Holdings and Buckle
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Duluth and Buckle is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Buckle Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buckle Inc 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 Buckle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buckle Inc has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and Buckle go up and down completely randomly.
Pair Corralation between Duluth Holdings and Buckle
Given the investment horizon of 90 days Duluth Holdings is expected to under-perform the Buckle. In addition to that, Duluth Holdings is 1.44 times more volatile than Buckle Inc. It trades about -0.02 of its total potential returns per unit of risk. Buckle Inc is currently generating about 0.04 per unit of volatility. If you would invest 3,727 in Buckle Inc on August 27, 2024 and sell it today you would earn a total of 1,159 from holding Buckle Inc or generate 31.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duluth Holdings vs. Buckle Inc
Performance |
| Timeline |
| Duluth Holdings |
| Buckle Inc |
Duluth Holdings and Buckle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and Buckle
The main advantage of trading using opposite Duluth Holdings and Buckle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, Buckle 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 Buckle will offset losses from the drop in Buckle's long position.| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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