Correlation Between DXC Technology and Costco Wholesale
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Costco Wholesale 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 DXC Technology and Costco Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology and Costco Wholesale, you can compare the effects of market volatilities on DXC Technology and Costco Wholesale 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 DXC Technology with a short position of Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Costco Wholesale.
Diversification Opportunities for DXC Technology and Costco Wholesale
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DXC and Costco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology and Costco Wholesale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale and DXC Technology 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 DXC Technology are associated (or correlated) with Costco Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costco Wholesale has no effect on the direction of DXC Technology i.e., DXC Technology and Costco Wholesale go up and down completely randomly.
Pair Corralation between DXC Technology and Costco Wholesale
If you would invest 1,892,701 in Costco Wholesale on November 4, 2024 and sell it today you would earn a total of 135,599 from holding Costco Wholesale or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
DXC Technology vs. Costco Wholesale
Performance |
| Timeline |
| DXC Technology |
| Costco Wholesale |
DXC Technology and Costco Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Costco Wholesale
The main advantage of trading using opposite DXC Technology and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, Costco Wholesale 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 Costco Wholesale will offset losses from the drop in Costco Wholesale's long position.| DXC Technology vs. Lloyds Banking Group | DXC Technology vs. Ameriprise Financial | DXC Technology vs. First Majestic Silver | DXC Technology vs. Hoteles City Express |
| Costco Wholesale vs. CVS Health | Costco Wholesale vs. Delta Air Lines | Costco Wholesale vs. The Home Depot | Costco Wholesale vs. Monster Beverage Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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