Correlation Between Duluth Holdings and PDD Holdings
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and PDD 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 PDD 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 PDD Holdings, you can compare the effects of market volatilities on Duluth Holdings and PDD 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 PDD Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and PDD Holdings.
Diversification Opportunities for Duluth Holdings and PDD Holdings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duluth and PDD is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and PDD Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PDD 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 PDD Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PDD Holdings has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and PDD Holdings go up and down completely randomly.
Pair Corralation between Duluth Holdings and PDD Holdings
Given the investment horizon of 90 days Duluth Holdings is expected to under-perform the PDD Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Duluth Holdings is 1.24 times less risky than PDD Holdings. The stock trades about -0.08 of its potential returns per unit of risk. The PDD Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,775 in PDD Holdings on November 2, 2024 and sell it today you would earn a total of 1,765 from holding PDD Holdings or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duluth Holdings vs. PDD Holdings
Performance |
| Timeline |
| Duluth Holdings |
| PDD Holdings |
Duluth Holdings and PDD Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and PDD Holdings
The main advantage of trading using opposite Duluth Holdings and PDD Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, PDD 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 PDD Holdings will offset losses from the drop in PDD Holdings' long position.| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
| PDD Holdings vs. Alibaba Group Holding | PDD Holdings vs. Sea | PDD Holdings vs. MercadoLibre | PDD Holdings vs. Vipshop Holdings Limited |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |