Correlation Between Dollar General and GNC Holdings
Can any of the company-specific risk be diversified away by investing in both Dollar General and GNC Holdings 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 Dollar General and GNC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dollar General and GNC Holdings, you can compare the effects of market volatilities on Dollar General and GNC Holdings 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 Dollar General with a short position of GNC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dollar General and GNC Holdings.
Diversification Opportunities for Dollar General and GNC Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dollar and GNC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dollar General and GNC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GNC Holdings and Dollar General 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 Dollar General are associated (or correlated) with GNC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GNC Holdings has no effect on the direction of Dollar General i.e., Dollar General and GNC Holdings go up and down completely randomly.
Pair Corralation between Dollar General and GNC Holdings
If you would invest (100.00) in GNC Holdings on January 25, 2024 and sell it today you would earn a total of 100.00 from holding GNC Holdings 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 |
Dollar General vs. GNC Holdings
Performance |
Timeline |
Dollar General |
GNC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dollar General and GNC Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dollar General and GNC Holdings
The main advantage of trading using opposite Dollar General and GNC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dollar General position performs unexpectedly, GNC Holdings 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 GNC Holdings will offset losses from the drop in GNC Holdings' long position.Dollar General vs. Big Lots | Dollar General vs. Aquagold International | Dollar General vs. Thrivent High Yield | Dollar General vs. Morningstar Unconstrained Allocation |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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