Correlation Between Duluth Holdings and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and Doubledown Interactive 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 Doubledown Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and Doubledown Interactive Co, you can compare the effects of market volatilities on Duluth Holdings and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Doubledown Interactive.
Diversification Opportunities for Duluth Holdings and Doubledown Interactive
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Duluth and Doubledown is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Duluth Holdings and Doubledown Interactive
Given the investment horizon of 90 days Duluth Holdings is expected to under-perform the Doubledown Interactive. But the stock apears to be less risky and, when comparing its historical volatility, Duluth Holdings is 1.68 times less risky than Doubledown Interactive. The stock trades about -0.4 of its potential returns per unit of risk. The Doubledown Interactive Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 975.00 in Doubledown Interactive Co on November 28, 2024 and sell it today you would earn a total of 32.00 from holding Doubledown Interactive Co or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duluth Holdings vs. Doubledown Interactive Co
Performance |
| Timeline |
| Duluth Holdings |
| Doubledown Interactive |
Duluth Holdings and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and Doubledown Interactive
The main advantage of trading using opposite Duluth Holdings and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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