Correlation Between WINMARK and DICKS Sporting
Can any of the company-specific risk be diversified away by investing in both WINMARK and DICKS Sporting 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 WINMARK and DICKS Sporting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WINMARK and DICKS Sporting Goods, you can compare the effects of market volatilities on WINMARK and DICKS Sporting 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 WINMARK with a short position of DICKS Sporting. Check out your portfolio center. Please also check ongoing floating volatility patterns of WINMARK and DICKS Sporting.
Diversification Opportunities for WINMARK and DICKS Sporting
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WINMARK and DICKS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding WINMARK and DICKS Sporting Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKS Sporting Goods and WINMARK 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 WINMARK are associated (or correlated) with DICKS Sporting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKS Sporting Goods has no effect on the direction of WINMARK i.e., WINMARK and DICKS Sporting go up and down completely randomly.
Pair Corralation between WINMARK and DICKS Sporting
Assuming the 90 days trading horizon WINMARK is expected to generate 50.12 times less return on investment than DICKS Sporting. But when comparing it to its historical volatility, WINMARK is 1.76 times less risky than DICKS Sporting. It trades about 0.01 of its potential returns per unit of risk. DICKS Sporting Goods is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 20,247 in DICKS Sporting Goods on October 9, 2024 and sell it today you would earn a total of 1,498 from holding DICKS Sporting Goods or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
WINMARK vs. DICKS Sporting Goods
Performance |
| Timeline |
| WINMARK |
| DICKS Sporting Goods |
WINMARK and DICKS Sporting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WINMARK and DICKS Sporting
The main advantage of trading using opposite WINMARK and DICKS Sporting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WINMARK position performs unexpectedly, DICKS Sporting 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 DICKS Sporting will offset losses from the drop in DICKS Sporting's long position.| WINMARK vs. Siemens Healthineers AG | WINMARK vs. SOEDER SPORTFISKE AB | WINMARK vs. OPKO HEALTH | WINMARK vs. PARKEN Sport Entertainment |
| DICKS Sporting vs. PennyMac Mortgage Investment | DICKS Sporting vs. MTY Food Group | DICKS Sporting vs. AOYAMA TRADING | DICKS Sporting vs. REINET INVESTMENTS SCA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Transaction History View history of all your transactions and understand their impact on performance |