Correlation Between Duluth Holdings and Foot Locker
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and Foot Locker 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 Foot Locker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and Foot Locker, you can compare the effects of market volatilities on Duluth Holdings and Foot Locker 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 Foot Locker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Foot Locker.
Diversification Opportunities for Duluth Holdings and Foot Locker
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Duluth and Foot is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Foot Locker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foot Locker 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 Foot Locker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foot Locker has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and Foot Locker go up and down completely randomly.
Pair Corralation between Duluth Holdings and Foot Locker
Given the investment horizon of 90 days Duluth Holdings is expected to generate 1.15 times less return on investment than Foot Locker. In addition to that, Duluth Holdings is 1.35 times more volatile than Foot Locker. It trades about 0.13 of its total potential returns per unit of risk. Foot Locker is currently generating about 0.2 per unit of volatility. If you would invest 2,294 in Foot Locker on August 31, 2024 and sell it today you would earn a total of 237.00 from holding Foot Locker or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duluth Holdings vs. Foot Locker
Performance |
| Timeline |
| Duluth Holdings |
| Foot Locker |
Duluth Holdings and Foot Locker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and Foot Locker
The main advantage of trading using opposite Duluth Holdings and Foot Locker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, Foot Locker 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 Foot Locker will offset losses from the drop in Foot Locker's long position.| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
| Foot Locker vs. Abercrombie Fitch | Foot Locker vs. Urban Outfitters | Foot Locker vs. Childrens Place | Foot Locker vs. American Eagle Outfitters |
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.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |