Correlation Between Evertec and Dicks Sporting
Can any of the company-specific risk be diversified away by investing in both Evertec and Dicks Sporting 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 Evertec and Dicks Sporting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evertec and Dicks Sporting Goods, you can compare the effects of market volatilities on Evertec and Dicks Sporting 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 Evertec with a short position of Dicks Sporting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertec and Dicks Sporting.
Diversification Opportunities for Evertec and Dicks Sporting
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Evertec and Dicks is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Evertec and Dicks Sporting Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicks Sporting Goods and Evertec 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 Evertec are associated (or correlated) with Dicks Sporting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dicks Sporting Goods has no effect on the direction of Evertec i.e., Evertec and Dicks Sporting go up and down completely randomly.
Pair Corralation between Evertec and Dicks Sporting
Given the investment horizon of 90 days Evertec is expected to under-perform the Dicks Sporting. But the stock apears to be less risky and, when comparing its historical volatility, Evertec is 1.25 times less risky than Dicks Sporting. The stock trades about -0.14 of its potential returns per unit of risk. The Dicks Sporting Goods is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 22,086 in Dicks Sporting Goods on September 4, 2025 and sell it today you would lose (1,267) from holding Dicks Sporting Goods or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evertec vs. Dicks Sporting Goods
Performance |
| Timeline |
| Evertec |
| Dicks Sporting Goods |
Evertec and Dicks Sporting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evertec and Dicks Sporting
The main advantage of trading using opposite Evertec and Dicks Sporting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evertec position performs unexpectedly, Dicks Sporting 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 Dicks Sporting will offset losses from the drop in Dicks Sporting's long position.| Evertec vs. Xtant Medical Holdings | Evertec vs. Reo Plastics | Evertec vs. Compagnie Plastic Omnium | Evertec vs. Doman Building Materials |
| Dicks Sporting vs. Dynasty Fine Wines | Dicks Sporting vs. Canlan Ice Sports | Dicks Sporting vs. Profound Medical Corp | Dicks Sporting vs. Kelvin Medical |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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