Correlation Between Charter Hall and Duketon Mining
Can any of the company-specific risk be diversified away by investing in both Charter Hall and Duketon Mining 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 Charter Hall and Duketon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charter Hall Retail and Duketon Mining, you can compare the effects of market volatilities on Charter Hall and Duketon Mining 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 Charter Hall with a short position of Duketon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Hall and Duketon Mining.
Diversification Opportunities for Charter Hall and Duketon Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Charter and Duketon is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Charter Hall Retail and Duketon Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duketon Mining and Charter Hall 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 Charter Hall Retail are associated (or correlated) with Duketon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duketon Mining has no effect on the direction of Charter Hall i.e., Charter Hall and Duketon Mining go up and down completely randomly.
Pair Corralation between Charter Hall and Duketon Mining
Assuming the 90 days trading horizon Charter Hall Retail is expected to generate 0.27 times more return on investment than Duketon Mining. However, Charter Hall Retail is 3.65 times less risky than Duketon Mining. It trades about 0.1 of its potential returns per unit of risk. Duketon Mining is currently generating about -0.29 per unit of risk. If you would invest 307.00 in Charter Hall Retail on October 17, 2024 and sell it today you would earn a total of 5.00 from holding Charter Hall Retail or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Charter Hall Retail vs. Duketon Mining
Performance |
| Timeline |
| Charter Hall Retail |
| Duketon Mining |
Charter Hall and Duketon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charter Hall and Duketon Mining
The main advantage of trading using opposite Charter Hall and Duketon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Hall position performs unexpectedly, Duketon Mining 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 Duketon Mining will offset losses from the drop in Duketon Mining's long position.| Charter Hall vs. Centrex Metals | Charter Hall vs. MetalsGrove Mining | Charter Hall vs. Carawine Resources Limited | Charter Hall vs. Aeon Metals |
| Duketon Mining vs. Centrex Metals | Duketon Mining vs. Charter Hall Retail | Duketon Mining vs. Hammer Metals | Duketon Mining vs. Farm Pride Foods |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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