Correlation Between DICKS Sporting and Aurubis AG
Can any of the company-specific risk be diversified away by investing in both DICKS Sporting and Aurubis AG 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 DICKS Sporting and Aurubis AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DICKS Sporting Goods and Aurubis AG, you can compare the effects of market volatilities on DICKS Sporting and Aurubis AG 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 DICKS Sporting with a short position of Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKS Sporting and Aurubis AG.
Diversification Opportunities for DICKS Sporting and Aurubis AG
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DICKS and Aurubis is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding DICKS Sporting Goods and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG and DICKS Sporting 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 DICKS Sporting Goods are associated (or correlated) with Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of DICKS Sporting i.e., DICKS Sporting and Aurubis AG go up and down completely randomly.
Pair Corralation between DICKS Sporting and Aurubis AG
Assuming the 90 days horizon DICKS Sporting Goods is expected to generate 1.06 times more return on investment than Aurubis AG. However, DICKS Sporting is 1.06 times more volatile than Aurubis AG. It trades about 0.06 of its potential returns per unit of risk. Aurubis AG is currently generating about 0.06 per unit of risk. If you would invest 20,168 in DICKS Sporting Goods on September 26, 2024 and sell it today you would earn a total of 542.00 from holding DICKS Sporting Goods or generate 2.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DICKS Sporting Goods vs. Aurubis AG
Performance |
Timeline |
DICKS Sporting Goods |
Aurubis AG |
DICKS Sporting and Aurubis AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DICKS Sporting and Aurubis AG
The main advantage of trading using opposite DICKS Sporting and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKS Sporting position performs unexpectedly, Aurubis AG 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 Aurubis AG will offset losses from the drop in Aurubis AG's long position.DICKS Sporting vs. MercadoLibre | DICKS Sporting vs. AutoZone | DICKS Sporting vs. Tractor Supply | DICKS Sporting vs. Ulta Beauty |
Aurubis AG vs. Singapore Telecommunications Limited | Aurubis AG vs. Universal Display | Aurubis AG vs. AEGEAN AIRLINES | Aurubis AG vs. Gol Intelligent Airlines |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Transaction History View history of all your transactions and understand their impact on performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |