Correlation Between DXP Enterprises and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both DXP Enterprises and Ingram Micro 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 DXP Enterprises and Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXP Enterprises and Ingram Micro, you can compare the effects of market volatilities on DXP Enterprises and Ingram Micro 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 DXP Enterprises with a short position of Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXP Enterprises and Ingram Micro.
Diversification Opportunities for DXP Enterprises and Ingram Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DXP and Ingram is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DXP Enterprises and Ingram Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro and DXP Enterprises 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 DXP Enterprises are associated (or correlated) with Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro has no effect on the direction of DXP Enterprises i.e., DXP Enterprises and Ingram Micro go up and down completely randomly.
Pair Corralation between DXP Enterprises and Ingram Micro
If you would invest 2,891 in DXP Enterprises on January 24, 2024 and sell it today you would earn a total of 2,114 from holding DXP Enterprises or generate 73.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
DXP Enterprises vs. Ingram Micro
Performance |
| Timeline |
| DXP Enterprises |
| Ingram Micro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DXP Enterprises and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXP Enterprises and Ingram Micro
The main advantage of trading using opposite DXP Enterprises and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXP Enterprises position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.| DXP Enterprises vs. Global Industrial Co | DXP Enterprises vs. EVI Industries | DXP Enterprises vs. Core Main | DXP Enterprises vs. Distribution Solutions Group |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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