Correlation Between Duluth Holdings and Jiuzi Holdings
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and Jiuzi Holdings 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 Jiuzi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and Jiuzi Holdings, you can compare the effects of market volatilities on Duluth Holdings and Jiuzi Holdings 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 Jiuzi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Jiuzi Holdings.
Diversification Opportunities for Duluth Holdings and Jiuzi Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Duluth and Jiuzi is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Jiuzi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiuzi Holdings 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 Jiuzi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiuzi Holdings has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and Jiuzi Holdings go up and down completely randomly.
Pair Corralation between Duluth Holdings and Jiuzi Holdings
Given the investment horizon of 90 days Duluth Holdings is expected to under-perform the Jiuzi Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Duluth Holdings is 3.26 times less risky than Jiuzi Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Jiuzi Holdings is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 159.00 in Jiuzi Holdings on November 9, 2024 and sell it today you would earn a total of 96.00 from holding Jiuzi Holdings or generate 60.38% 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. Jiuzi Holdings
Performance |
| Timeline |
| Duluth Holdings |
| Jiuzi Holdings |
Duluth Holdings and Jiuzi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and Jiuzi Holdings
The main advantage of trading using opposite Duluth Holdings and Jiuzi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, Jiuzi Holdings 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 Jiuzi Holdings will offset losses from the drop in Jiuzi Holdings' long position.| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
| Jiuzi Holdings vs. SunCar Technology Group | Jiuzi Holdings vs. Vroom Inc | Jiuzi Holdings vs. Carvana Co | Jiuzi Holdings vs. Uxin |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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