Correlation Between Shoe Carnival and Dmg Blockchain

Can any of the company-specific risk be diversified away by investing in both Shoe Carnival and Dmg Blockchain 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 Shoe Carnival and Dmg Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shoe Carnival and Dmg Blockchain Solutions, you can compare the effects of market volatilities on Shoe Carnival and Dmg Blockchain 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 Shoe Carnival with a short position of Dmg Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoe Carnival and Dmg Blockchain.

Diversification Opportunities for Shoe Carnival and Dmg Blockchain

0.27

Correlation Coefficient

Shoe Carnival  Dmg Blockchain

Modest diversification

The 3 months correlation between Shoe and Dmg is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shoe Carnival and Dmg Blockchain Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dmg Blockchain Solutions and Shoe Carnival 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 Shoe Carnival are associated (or correlated) with Dmg Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dmg Blockchain Solutions has no effect on the direction of Shoe Carnival i.e., Shoe Carnival and Dmg Blockchain go up and down completely randomly.

Pair Corralation between Shoe Carnival and Dmg Blockchain

Given the investment horizon of 90 days Shoe Carnival is expected to generate 0.47 times more return on investment than Dmg Blockchain. However, Shoe Carnival is 2.11 times less risky than Dmg Blockchain. It trades about 0.12 of its potential returns per unit of risk. Dmg Blockchain Solutions is currently generating about -0.16 per unit of risk. If you would invest  1,694  in Shoe Carnival on September 13, 2025 and sell it today you would earn a total of  145.00  from holding Shoe Carnival or generate 8.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Shoe Carnival  vs.  Dmg Blockchain Solutions

Shoe Carnival

Risk-Adjusted Performance

Weakest

Over the last 90 days Shoe Carnival has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Dmg Blockchain Solutions

Risk-Adjusted Performance

Weakest

Over the last 90 days Dmg Blockchain Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Dmg Blockchain is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Shoe Carnival and Dmg Blockchain

The main advantage of trading using opposite Shoe Carnival and Dmg Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoe Carnival position performs unexpectedly, Dmg Blockchain 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 Dmg Blockchain will offset losses from the drop in Dmg Blockchain's long position.

The idea behind Shoe Carnival and Dmg Blockchain Solutions 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.