Correlation Between Duckhorn Portfolio and Treasury Wine

Can any of the company-specific risk be diversified away by investing in both Duckhorn Portfolio and Treasury 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 Treasury 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 Treasury Wine Estates, you can compare the effects of market volatilities on Duckhorn Portfolio and Treasury 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 Treasury Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duckhorn Portfolio and Treasury Wine.

Diversification Opportunities for Duckhorn Portfolio and Treasury Wine

0.0

Correlation Coefficient

Duckhorn Portfolio  Treasury Wine

Pay attention - limited upside

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

Pair Corralation between Duckhorn Portfolio and Treasury Wine

If you would invest (100.00) in Duckhorn Portfolio on December 24, 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.  Treasury Wine Estates

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.

Treasury Wine Estates

Risk-Adjusted Performance

Very Weak

Over the last 90 days Treasury Wine Estates has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Duckhorn Portfolio and Treasury Wine

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

The idea behind Duckhorn Portfolio and Treasury Wine Estates 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.