Correlation Between ABBOTT and Old Dominion
Specify exactly 2 symbols:
By analyzing existing cross correlation between ABBOTT LABORATORIES 615 and Old Dominion Freight, you can compare the effects of market volatilities on ABBOTT and Old Dominion 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 ABBOTT with a short position of Old Dominion. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABBOTT and Old Dominion.
Diversification Opportunities for ABBOTT and Old Dominion
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ABBOTT and Old is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding ABBOTT LABORATORIES 615 and Old Dominion Freight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Dominion Freight and ABBOTT 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 ABBOTT LABORATORIES 615 are associated (or correlated) with Old Dominion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Dominion Freight has no effect on the direction of ABBOTT i.e., ABBOTT and Old Dominion go up and down completely randomly.
Pair Corralation between ABBOTT and Old Dominion
Assuming the 90 days trading horizon ABBOTT LABORATORIES 615 is expected to generate 47.05 times more return on investment than Old Dominion. However, ABBOTT is 47.05 times more volatile than Old Dominion Freight. It trades about 0.09 of its potential returns per unit of risk. Old Dominion Freight is currently generating about 0.06 per unit of risk. If you would invest 11,178 in ABBOTT LABORATORIES 615 on August 31, 2024 and sell it today you would lose (126.00) from holding ABBOTT LABORATORIES 615 or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.97% |
| Values | Daily Returns |
ABBOTT LABORATORIES 615 vs. Old Dominion Freight
Performance |
| Timeline |
| ABBOTT LABORATORIES 615 |
| Old Dominion Freight |
ABBOTT and Old Dominion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABBOTT and Old Dominion
The main advantage of trading using opposite ABBOTT and Old Dominion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABBOTT position performs unexpectedly, Old Dominion 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 Old Dominion will offset losses from the drop in Old Dominion's long position.| ABBOTT vs. Ryman Hospitality Properties | ABBOTT vs. Noble plc | ABBOTT vs. Park Hotels Resorts | ABBOTT vs. Patterson UTI Energy |
| Old Dominion vs. ArcBest Corp | Old Dominion vs. Marten Transport | Old Dominion vs. Werner Enterprises | Old Dominion vs. Knight Transportation |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |