Correlation Between SPASX Dividend and GDI Property
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend and GDI Property 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 SPASX Dividend and GDI Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPASX Dividend Opportunities and GDI Property Group, you can compare the effects of market volatilities on SPASX Dividend and GDI Property 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 SPASX Dividend with a short position of GDI Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and GDI Property.
Diversification Opportunities for SPASX Dividend and GDI Property
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPASX and GDI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities and GDI Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDI Property Group and SPASX Dividend 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 SPASX Dividend Opportunities are associated (or correlated) with GDI Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDI Property Group has no effect on the direction of SPASX Dividend i.e., SPASX Dividend and GDI Property go up and down completely randomly.
Pair Corralation between SPASX Dividend and GDI Property
Assuming the 90 days trading horizon SPASX Dividend Opportunities is expected to generate 0.69 times more return on investment than GDI Property. However, SPASX Dividend Opportunities is 1.44 times less risky than GDI Property. It trades about 0.12 of its potential returns per unit of risk. GDI Property Group is currently generating about -0.5 per unit of risk. If you would invest 167,020 in SPASX Dividend Opportunities on August 28, 2024 and sell it today you would earn a total of 2,680 from holding SPASX Dividend Opportunities or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. GDI Property Group
Performance |
| Timeline |
SPASX Dividend and GDI Property Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
GDI Property Group
Pair trading matchups for GDI Property
Pair Trading with SPASX Dividend and GDI Property
The main advantage of trading using opposite SPASX Dividend and GDI Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend position performs unexpectedly, GDI Property 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 GDI Property will offset losses from the drop in GDI Property's long position.| SPASX Dividend vs. Red Hill Iron | SPASX Dividend vs. Ainsworth Game Technology | SPASX Dividend vs. Champion Iron | SPASX Dividend vs. Autosports Group |
| GDI Property vs. Black Rock Mining | GDI Property vs. Health and Plant | GDI Property vs. Prime Financial Group | GDI Property vs. Epsilon Healthcare |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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