Correlation Between DICKS Sporting and COUNTRY GARDEN
Can any of the company-specific risk be diversified away by investing in both DICKS Sporting and COUNTRY GARDEN 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 DICKS Sporting and COUNTRY GARDEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DICKS Sporting Goods and COUNTRY GARDEN SVDL 0001, you can compare the effects of market volatilities on DICKS Sporting and COUNTRY GARDEN 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 DICKS Sporting with a short position of COUNTRY GARDEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKS Sporting and COUNTRY GARDEN.
Diversification Opportunities for DICKS Sporting and COUNTRY GARDEN
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKS and COUNTRY is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding DICKS Sporting Goods and COUNTRY GARDEN SVDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COUNTRY GARDEN SVDL and DICKS Sporting 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 DICKS Sporting Goods are associated (or correlated) with COUNTRY GARDEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COUNTRY GARDEN SVDL has no effect on the direction of DICKS Sporting i.e., DICKS Sporting and COUNTRY GARDEN go up and down completely randomly.
Pair Corralation between DICKS Sporting and COUNTRY GARDEN
Assuming the 90 days horizon DICKS Sporting Goods is expected to generate 1.16 times more return on investment than COUNTRY GARDEN. However, DICKS Sporting is 1.16 times more volatile than COUNTRY GARDEN SVDL 0001. It trades about 0.18 of its potential returns per unit of risk. COUNTRY GARDEN SVDL 0001 is currently generating about -0.04 per unit of risk. If you would invest 17,802 in DICKS Sporting Goods on September 2, 2024 and sell it today you would earn a total of 2,186 from holding DICKS Sporting Goods or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKS Sporting Goods vs. COUNTRY GARDEN SVDL 0001
Performance |
| Timeline |
| DICKS Sporting Goods |
| COUNTRY GARDEN SVDL |
DICKS Sporting and COUNTRY GARDEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKS Sporting and COUNTRY GARDEN
The main advantage of trading using opposite DICKS Sporting and COUNTRY GARDEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKS Sporting position performs unexpectedly, COUNTRY GARDEN 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 COUNTRY GARDEN will offset losses from the drop in COUNTRY GARDEN's long position.| DICKS Sporting vs. FLOW TRADERS LTD | DICKS Sporting vs. SBA Communications Corp | DICKS Sporting vs. Charter Communications | DICKS Sporting vs. Consolidated Communications Holdings |
| COUNTRY GARDEN vs. Chunghwa Telecom Co | COUNTRY GARDEN vs. Grupo Carso SAB | COUNTRY GARDEN vs. CITY OFFICE REIT | COUNTRY GARDEN vs. Consolidated Communications Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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