Correlation Between LL Flooring and DISH Network

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both LL Flooring and DISH Network 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 LL Flooring and DISH Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LL Flooring Holdings and DISH Network, you can compare the effects of market volatilities on LL Flooring and DISH Network 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 LL Flooring with a short position of DISH Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of LL Flooring and DISH Network.

Diversification Opportunities for LL Flooring and DISH Network

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between LL Flooring and DISH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LL Flooring Holdings and DISH Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISH Network and LL Flooring 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 LL Flooring Holdings are associated (or correlated) with DISH Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISH Network has no effect on the direction of LL Flooring i.e., LL Flooring and DISH Network go up and down completely randomly.

Pair Corralation between LL Flooring and DISH Network

Allowing for the 90-day total investment horizon LL Flooring Holdings is expected to under-perform the DISH Network. But the stock apears to be less risky and, when comparing its historical volatility, LL Flooring Holdings is 1.09 times less risky than DISH Network. The stock trades about -0.08 of its potential returns per unit of risk. The DISH Network is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  3,234  in DISH Network on December 29, 2023 and sell it today you would lose (2,657) from holding DISH Network or give up 82.16% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy87.88%
ValuesDaily Returns

LL Flooring Holdings  vs.  DISH Network

 Performance 
       Timeline  
LL Flooring Holdings 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days LL Flooring Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
DISH Network 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days DISH Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, DISH Network is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

LL Flooring and DISH Network Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with LL Flooring and DISH Network

The main advantage of trading using opposite LL Flooring and DISH Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LL Flooring position performs unexpectedly, DISH Network 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 DISH Network will offset losses from the drop in DISH Network's long position.
The idea behind LL Flooring Holdings and DISH Network pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Global Correlations
Find global opportunities by holding instruments from different markets
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
FinTech Suite
Use AI to screen and filter profitable investment opportunities