Correlation Between Duluth Holdings and Fly E
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and Fly E 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 Fly E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and Fly E Group, Common, you can compare the effects of market volatilities on Duluth Holdings and Fly E 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 Fly E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Fly E.
Diversification Opportunities for Duluth Holdings and Fly E
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duluth and Fly is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Fly E Group, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fly E Group, 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 Fly E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fly E Group, has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and Fly E go up and down completely randomly.
Pair Corralation between Duluth Holdings and Fly E
Given the investment horizon of 90 days Duluth Holdings is expected to generate 0.41 times more return on investment than Fly E. However, Duluth Holdings is 2.43 times less risky than Fly E. It trades about 0.03 of its potential returns per unit of risk. Fly E Group, Common is currently generating about -0.24 per unit of risk. If you would invest 371.00 in Duluth Holdings on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Duluth Holdings or generate 1.08% 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. Fly E Group, Common
Performance |
| Timeline |
| Duluth Holdings |
| Fly E Group, |
Duluth Holdings and Fly E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and Fly E
The main advantage of trading using opposite Duluth Holdings and Fly E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, Fly E 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 Fly E will offset losses from the drop in Fly E'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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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