Correlation Between Dollar General and PetMed Express
Can any of the company-specific risk be diversified away by investing in both Dollar General and PetMed Express 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 PetMed Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dollar General and PetMed Express, you can compare the effects of market volatilities on Dollar General and PetMed Express 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 PetMed Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dollar General and PetMed Express.
Diversification Opportunities for Dollar General and PetMed Express
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dollar and PetMed is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dollar General and PetMed Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetMed Express 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 PetMed Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetMed Express has no effect on the direction of Dollar General i.e., Dollar General and PetMed Express go up and down completely randomly.
Pair Corralation between Dollar General and PetMed Express
Allowing for the 90-day total investment horizon Dollar General is expected to generate 0.84 times more return on investment than PetMed Express. However, Dollar General is 1.19 times less risky than PetMed Express. It trades about -0.14 of its potential returns per unit of risk. PetMed Express is currently generating about -0.28 per unit of risk. If you would invest 15,345 in Dollar General on January 19, 2024 and sell it today you would lose (796.00) from holding Dollar General or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dollar General vs. PetMed Express
Performance |
| Timeline |
| Dollar General |
| PetMed Express |
Dollar General and PetMed Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dollar General and PetMed Express
The main advantage of trading using opposite Dollar General and PetMed Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dollar General position performs unexpectedly, PetMed Express 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 PetMed Express will offset losses from the drop in PetMed Express' long position.| Dollar General vs. Betterware De Mexico | Dollar General vs. Amexdrug | Dollar General vs. Provident Bancorp | Dollar General vs. Mersana Therapeutics |
| PetMed Express vs. High Tide | PetMed Express vs. China Jo Jo Drugstores | PetMed Express vs. Bimi International Medical | PetMed Express vs. Walgreens Boots Alliance |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |