Correlation Between ODDITY Tech and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both ODDITY Tech and Duluth Holdings 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 ODDITY Tech and Duluth Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ODDITY Tech Ltd and Duluth Holdings, you can compare the effects of market volatilities on ODDITY Tech and Duluth Holdings 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 ODDITY Tech with a short position of Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODDITY Tech and Duluth Holdings.
Diversification Opportunities for ODDITY Tech and Duluth Holdings
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ODDITY and Duluth is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ODDITY Tech Ltd and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings and ODDITY Tech 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 ODDITY Tech Ltd are associated (or correlated) with Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of ODDITY Tech i.e., ODDITY Tech and Duluth Holdings go up and down completely randomly.
Pair Corralation between ODDITY Tech and Duluth Holdings
Considering the 90-day investment horizon ODDITY Tech Ltd is expected to generate 1.28 times more return on investment than Duluth Holdings. However, ODDITY Tech is 1.28 times more volatile than Duluth Holdings. It trades about 0.21 of its potential returns per unit of risk. Duluth Holdings is currently generating about 0.08 per unit of risk. If you would invest 3,966 in ODDITY Tech Ltd on August 30, 2024 and sell it today you would earn a total of 715.00 from holding ODDITY Tech Ltd or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ODDITY Tech Ltd vs. Duluth Holdings
Performance |
| Timeline |
| ODDITY Tech |
| Duluth Holdings |
ODDITY Tech and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ODDITY Tech and Duluth Holdings
The main advantage of trading using opposite ODDITY Tech and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODDITY Tech position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' long position.| ODDITY Tech vs. Colgate Palmolive | ODDITY Tech vs. Estee Lauder Companies | ODDITY Tech vs. Procter Gamble | ODDITY Tech vs. United Guardian |
| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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