Correlation Between Duluth Holdings and CARRIER
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By analyzing existing cross correlation between Duluth Holdings and CARRIER GLOBAL P, you can compare the effects of market volatilities on Duluth Holdings and CARRIER 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 CARRIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and CARRIER.
Diversification Opportunities for Duluth Holdings and CARRIER
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duluth and CARRIER is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and CARRIER GLOBAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARRIER GLOBAL P 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 CARRIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARRIER GLOBAL P has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and CARRIER go up and down completely randomly.
Pair Corralation between Duluth Holdings and CARRIER
Given the investment horizon of 90 days Duluth Holdings is expected to under-perform the CARRIER. In addition to that, Duluth Holdings is 3.19 times more volatile than CARRIER GLOBAL P. It trades about -0.06 of its total potential returns per unit of risk. CARRIER GLOBAL P is currently generating about -0.03 per unit of volatility. If you would invest 9,642 in CARRIER GLOBAL P on September 12, 2024 and sell it today you would lose (203.00) from holding CARRIER GLOBAL P or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Duluth Holdings vs. CARRIER GLOBAL P
Performance |
| Timeline |
| Duluth Holdings |
| CARRIER GLOBAL P |
Duluth Holdings and CARRIER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and CARRIER
The main advantage of trading using opposite Duluth Holdings and CARRIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, CARRIER 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 CARRIER will offset losses from the drop in CARRIER's long position.| Duluth Holdings vs. Capri Holdings | Duluth Holdings vs. Movado Group | Duluth Holdings vs. Tapestry | Duluth Holdings vs. Brilliant Earth Group |
| CARRIER vs. Eltek | CARRIER vs. Bright Scholar Education | CARRIER vs. 51Talk Online Education | CARRIER vs. Coda Octopus Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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