Correlation Between Duckhorn Portfolio and Crimson Wine

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

By analyzing existing cross correlation between Duckhorn Portfolio and Crimson Wine, you can compare the effects of market volatilities on Duckhorn Portfolio and Crimson Wine 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 Duckhorn Portfolio with a short position of Crimson Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duckhorn Portfolio and Crimson Wine.

Diversification Opportunities for Duckhorn Portfolio and Crimson Wine

0.0

Correlation Coefficient

Duckhorn Portfolio  Crimson Wine

Pay attention - limited upside

The 3 months correlation between Duckhorn and Crimson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Duckhorn Portfolio and Crimson Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crimson Wine and Duckhorn Portfolio 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 Duckhorn Portfolio are associated (or correlated) with Crimson Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crimson Wine has no effect on the direction of Duckhorn Portfolio i.e., Duckhorn Portfolio and Crimson Wine go up and down completely randomly.

Pair Corralation between Duckhorn Portfolio and Crimson Wine

If you would invest (100.00) in Duckhorn Portfolio on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Duckhorn Portfolio or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Duckhorn Portfolio  vs.  Crimson Wine

Duckhorn Portfolio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Duckhorn Portfolio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Duckhorn Portfolio is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Crimson Wine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crimson Wine has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Duckhorn Portfolio and Crimson Wine

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

The idea behind Duckhorn Portfolio and Crimson Wine 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.