Correlation Between Bendigo and Dotz Nano
Can any of the company-specific risk be diversified away by investing in both Bendigo and Dotz Nano 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 Bendigo and Dotz Nano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bendigo And Adelaide and Dotz Nano, you can compare the effects of market volatilities on Bendigo and Dotz Nano 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 Bendigo with a short position of Dotz Nano. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bendigo and Dotz Nano.
Diversification Opportunities for Bendigo and Dotz Nano
Very good diversification
The 3 months correlation between Bendigo and Dotz is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bendigo And Adelaide and Dotz Nano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dotz Nano and Bendigo 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 Bendigo And Adelaide are associated (or correlated) with Dotz Nano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dotz Nano has no effect on the direction of Bendigo i.e., Bendigo and Dotz Nano go up and down completely randomly.
Pair Corralation between Bendigo and Dotz Nano
Assuming the 90 days trading horizon Bendigo is expected to generate 8.88 times less return on investment than Dotz Nano. But when comparing it to its historical volatility, Bendigo And Adelaide is 7.3 times less risky than Dotz Nano. It trades about 0.1 of its potential returns per unit of risk. Dotz Nano is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8.20 in Dotz Nano on September 19, 2024 and sell it today you would earn a total of 1.20 from holding Dotz Nano or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bendigo And Adelaide vs. Dotz Nano
Performance |
| Timeline |
| Bendigo And Adelaide |
| Dotz Nano |
Bendigo and Dotz Nano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bendigo and Dotz Nano
The main advantage of trading using opposite Bendigo and Dotz Nano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bendigo position performs unexpectedly, Dotz Nano 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 Dotz Nano will offset losses from the drop in Dotz Nano's long position.| Bendigo vs. Event Hospitality and | Bendigo vs. Sky Metals | Bendigo vs. Centaurus Metals | Bendigo vs. Black Rock Mining |
| Dotz Nano vs. Aneka Tambang Tbk | Dotz Nano vs. BHP Group Limited | Dotz Nano vs. Rio Tinto | Dotz Nano vs. Macquarie Group Ltd |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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