Correlation Between Wilhelmina and DLH Holdings
Can any of the company-specific risk be diversified away by investing in both Wilhelmina and DLH 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 Wilhelmina and DLH Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilhelmina and DLH Holdings Corp, you can compare the effects of market volatilities on Wilhelmina and DLH 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 Wilhelmina with a short position of DLH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilhelmina and DLH Holdings.
Diversification Opportunities for Wilhelmina and DLH Holdings
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wilhelmina and DLH is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Wilhelmina and DLH Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DLH Holdings Corp and Wilhelmina 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 Wilhelmina are associated (or correlated) with DLH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DLH Holdings Corp has no effect on the direction of Wilhelmina i.e., Wilhelmina and DLH Holdings go up and down completely randomly.
Pair Corralation between Wilhelmina and DLH Holdings
Given the investment horizon of 90 days Wilhelmina is expected to generate 1.07 times more return on investment than DLH Holdings. However, Wilhelmina is 1.07 times more volatile than DLH Holdings Corp. It trades about -0.07 of its potential returns per unit of risk. DLH Holdings Corp is currently generating about -0.08 per unit of risk. If you would invest 429.00 in Wilhelmina on August 26, 2024 and sell it today you would lose (41.00) from holding Wilhelmina or give up 9.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilhelmina vs. DLH Holdings Corp
Performance |
| Timeline |
| Wilhelmina |
| DLH Holdings Corp |
Wilhelmina and DLH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilhelmina and DLH Holdings
The main advantage of trading using opposite Wilhelmina and DLH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilhelmina position performs unexpectedly, DLH 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 DLH Holdings will offset losses from the drop in DLH Holdings' long position.| Wilhelmina vs. Performant Financial | Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited |
| DLH Holdings vs. ExlService Holdings | DLH Holdings vs. WNS Holdings | DLH Holdings vs. Gartner | DLH Holdings vs. The Hackett Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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