Correlation Between Duluth Holdings and PVH Corp
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and PVH Corp 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 PVH Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and PVH Corp, you can compare the effects of market volatilities on Duluth Holdings and PVH Corp 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 PVH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and PVH Corp.
Diversification Opportunities for Duluth Holdings and PVH Corp
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duluth and PVH is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH Corp 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 PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and PVH Corp go up and down completely randomly.
Pair Corralation between Duluth Holdings and PVH Corp
Given the investment horizon of 90 days Duluth Holdings is expected to generate 2.22 times less return on investment than PVH Corp. In addition to that, Duluth Holdings is 1.59 times more volatile than PVH Corp. It trades about 0.08 of its total potential returns per unit of risk. PVH Corp is currently generating about 0.28 per unit of volatility. If you would invest 9,560 in PVH Corp on August 27, 2024 and sell it today you would earn a total of 1,210 from holding PVH Corp or generate 12.66% 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. PVH Corp
Performance |
| Timeline |
| Duluth Holdings |
| PVH Corp |
Duluth Holdings and PVH Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and PVH Corp
The main advantage of trading using opposite Duluth Holdings and PVH Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, PVH Corp 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 PVH Corp will offset losses from the drop in PVH Corp's long position.| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
| PVH Corp vs. VF Corporation | PVH Corp vs. Levi Strauss Co | PVH Corp vs. Under Armour A | PVH Corp vs. Oxford Industries |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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