Correlation Between Vestis and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both Vestis 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 Vestis and Duluth Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vestis and Duluth Holdings, you can compare the effects of market volatilities on Vestis 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 Vestis with a short position of Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestis and Duluth Holdings.
Diversification Opportunities for Vestis and Duluth Holdings
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vestis and Duluth is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Vestis and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings and Vestis 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 Vestis 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 Vestis i.e., Vestis and Duluth Holdings go up and down completely randomly.
Pair Corralation between Vestis and Duluth Holdings
Given the investment horizon of 90 days Vestis is expected to generate 0.85 times more return on investment than Duluth Holdings. However, Vestis is 1.17 times less risky than Duluth Holdings. It trades about -0.03 of its potential returns per unit of risk. Duluth Holdings is currently generating about -0.33 per unit of risk. If you would invest 1,912 in Vestis on January 29, 2024 and sell it today you would lose (22.00) from holding Vestis or give up 1.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Vestis vs. Duluth Holdings
Performance |
Timeline |
Vestis |
Duluth Holdings |
Vestis and Duluth Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vestis and Duluth Holdings
The main advantage of trading using opposite Vestis and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestis 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.Vestis vs. PROG Holdings | Vestis vs. GATX Corporation | Vestis vs. McGrath RentCorp | Vestis vs. Custom Truck One |
Duluth Holdings vs. Gap Inc | Duluth Holdings vs. Foot Locker | Duluth Holdings vs. Abercrombie Fitch | Duluth Holdings vs. Lululemon Athletica |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |