Correlation Between American Rebel and Dogness International

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

By analyzing existing cross correlation between American Rebel Holdings and Dogness International Corp, you can compare the effects of market volatilities on American Rebel and Dogness International 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 American Rebel with a short position of Dogness International. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Rebel and Dogness International.

Diversification Opportunities for American Rebel and Dogness International

-0.38

Correlation Coefficient

American Rebel  Dogness International

Very good diversification

The 3 months correlation between American and Dogness is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding American Rebel Holdings and Dogness International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogness International and American Rebel 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 American Rebel Holdings are associated (or correlated) with Dogness International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogness International has no effect on the direction of American Rebel i.e., American Rebel and Dogness International go up and down completely randomly.

Pair Corralation between American Rebel and Dogness International

Assuming the 90 days horizon American Rebel Holdings is expected to generate 3.12 times more return on investment than Dogness International. However, American Rebel is 3.12 times more volatile than Dogness International Corp. It trades about 0.13 of its potential returns per unit of risk. Dogness International Corp is currently generating about 0.01 per unit of risk. If you would invest  1.06  in American Rebel Holdings on December 30, 2024 and sell it today you would earn a total of  0.05  from holding American Rebel Holdings or generate 4.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	79.03%
Values	Daily Returns

American Rebel Holdings  vs.  Dogness International Corp

American Rebel Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in American Rebel Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental drivers, American Rebel showed solid returns over the last few months and may actually be approaching a breakup point.

Dogness International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dogness International Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak technical and fundamental indicators, Dogness International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with American Rebel and Dogness International

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

The idea behind American Rebel Holdings and Dogness International Corp 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.