Correlation Between Dillards and Inogen
Can any of the company-specific risk be diversified away by investing in both Dillards and Inogen 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 Dillards and Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dillards and Inogen Inc, you can compare the effects of market volatilities on Dillards and Inogen 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 Dillards with a short position of Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dillards and Inogen.
Diversification Opportunities for Dillards and Inogen
Very weak diversification
The 3 months correlation between Dillards and Inogen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dillards and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and Dillards 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 Dillards are associated (or correlated) with Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of Dillards i.e., Dillards and Inogen go up and down completely randomly.
Pair Corralation between Dillards and Inogen
Considering the 90-day investment horizon Dillards is expected to generate 0.36 times more return on investment than Inogen. However, Dillards is 2.82 times less risky than Inogen. It trades about -0.01 of its potential returns per unit of risk. Inogen Inc is currently generating about -0.07 per unit of risk. If you would invest 42,524 in Dillards on January 18, 2024 and sell it today you would lose (1,086) from holding Dillards or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dillards vs. Inogen Inc
Performance |
| Timeline |
| Dillards |
| Inogen Inc |
Dillards and Inogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dillards and Inogen
The main advantage of trading using opposite Dillards and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dillards position performs unexpectedly, Inogen 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 Inogen will offset losses from the drop in Inogen's long position.| Dillards vs. Marks Spencer Group | Dillards vs. Marks and Spencer | Dillards vs. Dillards Capital Trust | Dillards vs. Companhia Brasileira de |
| Inogen vs. The Ensign Group | Inogen vs. Select Medical Holdings | Inogen vs. Encompass Health Corp | Inogen vs. Enhabit |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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