Correlation Between VOXX International and Dogness International

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

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

Diversification Opportunities for VOXX International and Dogness International

0.76

Correlation Coefficient

VOXX International  Dogness International

Poor diversification

The 3 months correlation between VOXX and Dogness is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International and Dogness International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogness International and VOXX International 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 VOXX International 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 VOXX International i.e., VOXX International and Dogness International go up and down completely randomly.

Pair Corralation between VOXX International and Dogness International

Given the investment horizon of 90 days VOXX International is expected to generate 3.64 times less return on investment than Dogness International. But when comparing it to its historical volatility, VOXX International is 2.16 times less risky than Dogness International. It trades about 0.07 of its potential returns per unit of risk. Dogness International Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2,712  in Dogness International Corp on September 28, 2024 and sell it today you would earn a total of  1,488  from holding Dogness International Corp or generate 54.87% return on investment over 90 days.

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

VOXX International  vs.  Dogness International Corp

VOXX International

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in VOXX International are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, VOXX International showed solid returns over the last few months and may actually be approaching a breakup point.

Dogness International

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dogness International Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, Dogness International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VOXX International and Dogness International

The main advantage of trading using opposite VOXX International and Dogness International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOXX International 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 VOXX International 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..