Correlation Between Wabash National and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Wabash National and Doubledown Interactive 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 Wabash National and Doubledown Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wabash National and Doubledown Interactive Co, you can compare the effects of market volatilities on Wabash National and Doubledown Interactive 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 Wabash National with a short position of Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabash National and Doubledown Interactive.
Diversification Opportunities for Wabash National and Doubledown Interactive
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wabash and Doubledown is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Wabash National and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive and Wabash National 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 Wabash National are associated (or correlated) with Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Wabash National i.e., Wabash National and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Wabash National and Doubledown Interactive
Considering the 90-day investment horizon Wabash National is expected to under-perform the Doubledown Interactive. But the stock apears to be less risky and, when comparing its historical volatility, Wabash National is 1.62 times less risky than Doubledown Interactive. The stock trades about -0.01 of its potential returns per unit of risk. The Doubledown Interactive Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 937.00 in Doubledown Interactive Co on September 2, 2024 and sell it today you would earn a total of 463.00 from holding Doubledown Interactive Co or generate 49.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wabash National vs. Doubledown Interactive Co
Performance |
| Timeline |
| Wabash National |
| Doubledown Interactive |
Wabash National and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wabash National and Doubledown Interactive
The main advantage of trading using opposite Wabash National and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabash National position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.| Wabash National vs. Rev Group | Wabash National vs. Gencor Industries | Wabash National vs. Alamo Group | Wabash National vs. Columbus McKinnon |
| Doubledown Interactive vs. Gravity Co | Doubledown Interactive vs. NetEase | Doubledown Interactive vs. Snail, Class A | Doubledown Interactive vs. GameSquare Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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