Correlation Between Dominos Pizza and Abacus Life,

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

By analyzing existing cross correlation between Dominos Pizza and Abacus Life, 9875, you can compare the effects of market volatilities on Dominos Pizza and Abacus Life, 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 Dominos Pizza with a short position of Abacus Life,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dominos Pizza and Abacus Life,.

Diversification Opportunities for Dominos Pizza and Abacus Life,

0.65

Correlation Coefficient

Dominos Pizza  Abacus Life,

Poor diversification

The 3 months correlation between Dominos and Abacus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dominos Pizza and Abacus Life, 9875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life, 9875 and Dominos Pizza 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 Dominos Pizza are associated (or correlated) with Abacus Life,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life, 9875 has no effect on the direction of Dominos Pizza i.e., Dominos Pizza and Abacus Life, go up and down completely randomly.

Pair Corralation between Dominos Pizza and Abacus Life,

Considering the 90-day investment horizon Dominos Pizza is expected to generate 1.96 times more return on investment than Abacus Life,. However, Dominos Pizza is 1.96 times more volatile than Abacus Life, 9875. It trades about 0.07 of its potential returns per unit of risk. Abacus Life, 9875 is currently generating about 0.1 per unit of risk. If you would invest  43,837  in Dominos Pizza on September 20, 2024 and sell it today you would earn a total of  837.00  from holding Dominos Pizza or generate 1.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Dominos Pizza  vs.  Abacus Life, 9875

Dominos Pizza

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dominos Pizza are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Dominos Pizza may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Abacus Life, 9875

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Abacus Life, 9875 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Abacus Life, is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Dominos Pizza and Abacus Life,

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

The idea behind Dominos Pizza and Abacus Life, 9875 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.