Correlation Between Aspire Mining and Dexus Convenience
Can any of the company-specific risk be diversified away by investing in both Aspire Mining 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 Aspire Mining and Dexus Convenience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspire Mining and Dexus Convenience Retail, you can compare the effects of market volatilities on Aspire Mining 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 Aspire Mining with a short position of Dexus Convenience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspire Mining and Dexus Convenience.
Diversification Opportunities for Aspire Mining and Dexus Convenience
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aspire and Dexus is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aspire Mining 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 Aspire Mining 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 Aspire Mining 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 Aspire Mining i.e., Aspire Mining and Dexus Convenience go up and down completely randomly.
Pair Corralation between Aspire Mining and Dexus Convenience
Assuming the 90 days trading horizon Aspire Mining is expected to generate 4.65 times more return on investment than Dexus Convenience. However, Aspire Mining is 4.65 times more volatile than Dexus Convenience Retail. It trades about 0.06 of its potential returns per unit of risk. Dexus Convenience Retail is currently generating about 0.09 per unit of risk. If you would invest 22.00 in Aspire Mining on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Aspire Mining or generate 31.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspire Mining vs. Dexus Convenience Retail
Performance |
| Timeline |
| Aspire Mining |
| Dexus Convenience Retail |
Aspire Mining and Dexus Convenience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspire Mining and Dexus Convenience
The main advantage of trading using opposite Aspire Mining and Dexus Convenience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspire Mining 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.| Aspire Mining vs. Stelar Metals | Aspire Mining vs. Singular Health Group | Aspire Mining vs. Oneview Healthcare PLC | Aspire Mining vs. Fisher Paykel Healthcare |
| Dexus Convenience vs. Seven West Media | Dexus Convenience vs. Carlton Investments | Dexus Convenience vs. Clime Investment Management | Dexus Convenience vs. Centaurus Metals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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