Correlation Between Gildan Activewear and DRI Healthcare
Can any of the company-specific risk be diversified away by investing in both Gildan Activewear and DRI Healthcare 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 Gildan Activewear and DRI Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gildan Activewear and DRI Healthcare Trust, you can compare the effects of market volatilities on Gildan Activewear and DRI Healthcare 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 Gildan Activewear with a short position of DRI Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gildan Activewear and DRI Healthcare.
Diversification Opportunities for Gildan Activewear and DRI Healthcare
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gildan and DRI is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Gildan Activewear and DRI Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DRI Healthcare Trust and Gildan Activewear 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 Gildan Activewear are associated (or correlated) with DRI Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DRI Healthcare Trust has no effect on the direction of Gildan Activewear i.e., Gildan Activewear and DRI Healthcare go up and down completely randomly.
Pair Corralation between Gildan Activewear and DRI Healthcare
Assuming the 90 days trading horizon Gildan Activewear is expected to generate 0.67 times more return on investment than DRI Healthcare. However, Gildan Activewear is 1.49 times less risky than DRI Healthcare. It trades about 0.09 of its potential returns per unit of risk. DRI Healthcare Trust is currently generating about 0.05 per unit of risk. If you would invest 3,524 in Gildan Activewear on September 12, 2024 and sell it today you would earn a total of 3,317 from holding Gildan Activewear or generate 94.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gildan Activewear vs. DRI Healthcare Trust
Performance |
| Timeline |
| Gildan Activewear |
| DRI Healthcare Trust |
Gildan Activewear and DRI Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gildan Activewear and DRI Healthcare
The main advantage of trading using opposite Gildan Activewear and DRI Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gildan Activewear position performs unexpectedly, DRI Healthcare 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 DRI Healthcare will offset losses from the drop in DRI Healthcare's long position.| Gildan Activewear vs. Apple Inc CDR | Gildan Activewear vs. NVIDIA CDR | Gildan Activewear vs. Microsoft Corp CDR | Gildan Activewear vs. Amazon CDR |
| DRI Healthcare vs. Premium Income | DRI Healthcare vs. E L Financial Corp | DRI Healthcare vs. Fairfax Financial Holdings | DRI Healthcare vs. Fairfax Fin Hld |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |