Correlation Between Duluth Holdings and SOCGEN

Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and SOCGEN 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 Duluth Holdings and SOCGEN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Duluth Holdings and SOCGEN 4677 15 JUN 27, you can compare the effects of market volatilities on Duluth Holdings and SOCGEN 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 Duluth Holdings with a short position of SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and SOCGEN.

Diversification Opportunities for Duluth Holdings and SOCGEN

-0.34

Correlation Coefficient

Duluth Holdings  SOCGEN

Very good diversification

The 3 months correlation between Duluth and SOCGEN is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and SOCGEN 4677 15 JUN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 4677 15 and Duluth Holdings 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 Duluth Holdings are associated (or correlated) with SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 4677 15 has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and SOCGEN go up and down completely randomly.

Pair Corralation between Duluth Holdings and SOCGEN

Given the investment horizon of 90 days Duluth Holdings is expected to generate 4.46 times more return on investment than SOCGEN. However, Duluth Holdings is 4.46 times more volatile than SOCGEN 4677 15 JUN 27. It trades about 0.07 of its potential returns per unit of risk. SOCGEN 4677 15 JUN 27 is currently generating about -0.3 per unit of risk. If you would invest  376.00  in Duluth Holdings on September 4, 2024 and sell it today you would earn a total of  13.00  from holding Duluth Holdings or generate 3.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	38.1%
Values	Daily Returns

Duluth Holdings  vs.  SOCGEN 4677 15 JUN 27

Duluth Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Duluth Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Duluth Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

SOCGEN 4677 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SOCGEN 4677 15 JUN 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for SOCGEN 4677 15 JUN 27 investors.

Pair Trading with Duluth Holdings and SOCGEN

The main advantage of trading using opposite Duluth Holdings and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN's long position.

The idea behind Duluth Holdings and SOCGEN 4677 15 JUN 27 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.