Correlation Between OFFICE DEPOT and DFS Furniture
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and DFS Furniture 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 OFFICE DEPOT and DFS Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and DFS Furniture PLC, you can compare the effects of market volatilities on OFFICE DEPOT and DFS Furniture 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 OFFICE DEPOT with a short position of DFS Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and DFS Furniture.
Diversification Opportunities for OFFICE DEPOT and DFS Furniture
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and DFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and DFS Furniture PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFS Furniture PLC and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with DFS Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFS Furniture PLC has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and DFS Furniture go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and DFS Furniture
If you would invest 157.00 in DFS Furniture PLC on October 28, 2024 and sell it today you would earn a total of 3.00 from holding DFS Furniture PLC or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.44% |
| Values | Daily Returns |
OFFICE DEPOT vs. DFS Furniture PLC
Performance |
| Timeline |
| OFFICE DEPOT |
| DFS Furniture PLC |
OFFICE DEPOT and DFS Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and DFS Furniture
The main advantage of trading using opposite OFFICE DEPOT and DFS Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, DFS Furniture 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 DFS Furniture will offset losses from the drop in DFS Furniture's long position.| OFFICE DEPOT vs. US FOODS HOLDING | OFFICE DEPOT vs. Elmos Semiconductor SE | OFFICE DEPOT vs. NH Foods | OFFICE DEPOT vs. Nordic Semiconductor ASA |
| DFS Furniture vs. Apple Inc | DFS Furniture vs. Apple Inc | DFS Furniture vs. Apple Inc | DFS Furniture vs. Apple Inc |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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