Correlation Between Duluth Holdings and Capital Senior
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and Capital Senior 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 Capital Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and Capital Senior Living, you can compare the effects of market volatilities on Duluth Holdings and Capital Senior 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 Capital Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Capital Senior.
Diversification Opportunities for Duluth Holdings and Capital Senior
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Duluth and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Capital Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Senior Living 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 Capital Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Senior Living has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and Capital Senior go up and down completely randomly.
Pair Corralation between Duluth Holdings and Capital Senior
If you would invest (100.00) in Capital Senior Living on August 25, 2024 and sell it today you would earn a total of 100.00 from holding Capital Senior Living or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Duluth Holdings vs. Capital Senior Living
Performance |
| Timeline |
| Duluth Holdings |
| Capital Senior Living |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Duluth Holdings and Capital Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and Capital Senior
The main advantage of trading using opposite Duluth Holdings and Capital Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, Capital Senior 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 Capital Senior will offset losses from the drop in Capital Senior's long position.| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
| Capital Senior vs. Boot Barn Holdings | Capital Senior vs. Teleflex Incorporated | Capital Senior vs. Victorias Secret Co | Capital Senior vs. Duluth Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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