Correlation Between AiMedia Technologies and Dexus Convenience
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Dexus Convenience 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 AiMedia Technologies and Dexus Convenience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Dexus Convenience Retail, you can compare the effects of market volatilities on AiMedia Technologies and Dexus Convenience 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 AiMedia Technologies with a short position of Dexus Convenience. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Dexus Convenience.
Diversification Opportunities for AiMedia Technologies and Dexus Convenience
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AiMedia and Dexus is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Dexus Convenience Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexus Convenience Retail and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with Dexus Convenience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexus Convenience Retail has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Dexus Convenience go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Dexus Convenience
Assuming the 90 days trading horizon AiMedia Technologies is expected to under-perform the Dexus Convenience. In addition to that, AiMedia Technologies is 2.91 times more volatile than Dexus Convenience Retail. It trades about -0.28 of its total potential returns per unit of risk. Dexus Convenience Retail is currently generating about -0.01 per unit of volatility. If you would invest 289.00 in Dexus Convenience Retail on November 9, 2024 and sell it today you would lose (2.00) from holding Dexus Convenience Retail or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Dexus Convenience Retail
Performance |
| Timeline |
| AiMedia Technologies |
| Dexus Convenience Retail |
AiMedia Technologies and Dexus Convenience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Dexus Convenience
The main advantage of trading using opposite AiMedia Technologies and Dexus Convenience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Dexus Convenience 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 Dexus Convenience will offset losses from the drop in Dexus Convenience's long position.| AiMedia Technologies vs. Event Hospitality and | AiMedia Technologies vs. Data3 | AiMedia Technologies vs. Apiam Animal Health | AiMedia Technologies vs. Flagship Investments |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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