Correlation Between G2D Investments and Dollar General
Can any of the company-specific risk be diversified away by investing in both G2D Investments and Dollar General 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 G2D Investments and Dollar General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G2D Investments and Dollar General, you can compare the effects of market volatilities on G2D Investments and Dollar General 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 G2D Investments with a short position of Dollar General. Check out your portfolio center. Please also check ongoing floating volatility patterns of G2D Investments and Dollar General.
Diversification Opportunities for G2D Investments and Dollar General
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between G2D and Dollar is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding G2D Investments and Dollar General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar General and G2D Investments 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 G2D Investments are associated (or correlated) with Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of G2D Investments i.e., G2D Investments and Dollar General go up and down completely randomly.
Pair Corralation between G2D Investments and Dollar General
Assuming the 90 days trading horizon G2D Investments is expected to generate 1.14 times more return on investment than Dollar General. However, G2D Investments is 1.14 times more volatile than Dollar General. It trades about 0.0 of its potential returns per unit of risk. Dollar General is currently generating about -0.06 per unit of risk. If you would invest 252.00 in G2D Investments on August 30, 2024 and sell it today you would lose (37.00) from holding G2D Investments or give up 14.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
G2D Investments vs. Dollar General
Performance |
| Timeline |
| G2D Investments |
| Dollar General |
G2D Investments and Dollar General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G2D Investments and Dollar General
The main advantage of trading using opposite G2D Investments and Dollar General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G2D Investments position performs unexpectedly, Dollar General 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 Dollar General will offset losses from the drop in Dollar General's long position.| G2D Investments vs. Ameriprise Financial | G2D Investments vs. Bradespar SA | G2D Investments vs. Bradespar SA | G2D Investments vs. Habitat Ii |
| Dollar General vs. Walmart | Dollar General vs. Costco Wholesale | Dollar General vs. BTG Pactual Logstica | Dollar General vs. Plano Plano Desenvolvimento |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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