Correlation Between Dollar General and Caseys General
Can any of the company-specific risk be diversified away by investing in both Dollar General and Caseys General 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 Dollar General and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dollar General and Caseys General Stores, you can compare the effects of market volatilities on Dollar General and Caseys General 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 Dollar General with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dollar General and Caseys General.
Diversification Opportunities for Dollar General and Caseys General
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dollar and Caseys is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dollar General and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and Dollar General 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 Dollar General are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Dollar General i.e., Dollar General and Caseys General go up and down completely randomly.
Pair Corralation between Dollar General and Caseys General
Allowing for the 90-day total investment horizon Dollar General is expected to under-perform the Caseys General. In addition to that, Dollar General is 1.4 times more volatile than Caseys General Stores. It trades about -0.07 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.08 per unit of volatility. If you would invest 50,762 in Caseys General Stores on August 14, 2025 and sell it today you would earn a total of 3,010 from holding Caseys General Stores or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dollar General vs. Caseys General Stores
Performance |
| Timeline |
| Dollar General |
| Caseys General Stores |
Dollar General and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dollar General and Caseys General
The main advantage of trading using opposite Dollar General and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dollar General position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| Dollar General vs. Dollar Tree | Dollar General vs. Constellation Brands Class | Dollar General vs. Church Dwight | Dollar General vs. BJs Wholesale Club |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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