Correlation Between Ingram Micro and DXP Enterprises
Can any of the company-specific risk be diversified away by investing in both Ingram Micro and DXP Enterprises 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 Ingram Micro and DXP Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingram Micro and DXP Enterprises, you can compare the effects of market volatilities on Ingram Micro and DXP Enterprises 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 Ingram Micro with a short position of DXP Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingram Micro and DXP Enterprises.
Diversification Opportunities for Ingram Micro and DXP Enterprises
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ingram and DXP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ingram Micro and DXP Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXP Enterprises and Ingram Micro 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 Ingram Micro are associated (or correlated) with DXP Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXP Enterprises has no effect on the direction of Ingram Micro i.e., Ingram Micro and DXP Enterprises go up and down completely randomly.
Pair Corralation between Ingram Micro and DXP Enterprises
If you would invest 4,484 in DXP Enterprises on February 8, 2024 and sell it today you would earn a total of 870.00 from holding DXP Enterprises or generate 19.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Ingram Micro vs. DXP Enterprises
Performance |
Timeline |
Ingram Micro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DXP Enterprises |
Ingram Micro and DXP Enterprises Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ingram Micro and DXP Enterprises
The main advantage of trading using opposite Ingram Micro and DXP Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingram Micro position performs unexpectedly, DXP Enterprises 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 DXP Enterprises will offset losses from the drop in DXP Enterprises' long position.Ingram Micro vs. Zumiez Inc | Ingram Micro vs. Figs Inc | Ingram Micro vs. Beyond Inc | Ingram Micro vs. Boot Barn Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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