Correlation Between SPASX Dividend and PEXA
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend and PEXA 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 PEXA 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 PEXA Group, you can compare the effects of market volatilities on SPASX Dividend and PEXA 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 PEXA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and PEXA.
Diversification Opportunities for SPASX Dividend and PEXA
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between SPASX and PEXA is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities and PEXA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEXA 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 PEXA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEXA Group has no effect on the direction of SPASX Dividend i.e., SPASX Dividend and PEXA go up and down completely randomly.
Pair Corralation between SPASX Dividend and PEXA
Assuming the 90 days trading horizon SPASX Dividend Opportunities is expected to generate 0.39 times more return on investment than PEXA. However, SPASX Dividend Opportunities is 2.58 times less risky than PEXA. It trades about 0.05 of its potential returns per unit of risk. PEXA Group is currently generating about -0.03 per unit of risk. If you would invest 166,620 in SPASX Dividend Opportunities on August 31, 2024 and sell it today you would earn a total of 3,020 from holding SPASX Dividend Opportunities or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. PEXA Group
Performance |
| Timeline |
SPASX Dividend and PEXA Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
PEXA Group
Pair trading matchups for PEXA
Pair Trading with SPASX Dividend and PEXA
The main advantage of trading using opposite SPASX Dividend and PEXA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend position performs unexpectedly, PEXA 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 PEXA will offset losses from the drop in PEXA's long position.| SPASX Dividend vs. Centaurus Metals | SPASX Dividend vs. Readytech Holdings | SPASX Dividend vs. Aurelia Metals | SPASX Dividend vs. Leeuwin Metals |
| PEXA vs. Flagship Investments | PEXA vs. TTG Fintech | PEXA vs. Pinnacle Investment Management | PEXA vs. Richmond Vanadium Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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