Correlation Between Dexon Technology and DOHOME
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By analyzing existing cross correlation between Dexon Technology PCL and DOHOME, you can compare the effects of market volatilities on Dexon Technology and DOHOME 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 Dexon Technology with a short position of DOHOME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexon Technology and DOHOME.
Diversification Opportunities for Dexon Technology and DOHOME
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dexon and DOHOME is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dexon Technology PCL and DOHOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOHOME and Dexon Technology 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 Dexon Technology PCL are associated (or correlated) with DOHOME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOHOME has no effect on the direction of Dexon Technology i.e., Dexon Technology and DOHOME go up and down completely randomly.
Pair Corralation between Dexon Technology and DOHOME
Assuming the 90 days trading horizon Dexon Technology PCL is expected to generate 26.05 times more return on investment than DOHOME. However, Dexon Technology is 26.05 times more volatile than DOHOME. It trades about 0.06 of its potential returns per unit of risk. DOHOME is currently generating about -0.03 per unit of risk. If you would invest 215.00 in Dexon Technology PCL on September 14, 2024 and sell it today you would lose (63.00) from holding Dexon Technology PCL or give up 29.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dexon Technology PCL vs. DOHOME
Performance |
| Timeline |
| Dexon Technology PCL |
| DOHOME |
Dexon Technology and DOHOME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexon Technology and DOHOME
The main advantage of trading using opposite Dexon Technology and DOHOME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexon Technology position performs unexpectedly, DOHOME 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 DOHOME will offset losses from the drop in DOHOME's long position.| Dexon Technology vs. Namwiwat Medical | Dexon Technology vs. LH Hotel Leasehold | Dexon Technology vs. Intermedical Care and | Dexon Technology vs. Asia Medical Agricultural |
| DOHOME vs. Com7 PCL | DOHOME vs. Central Retail | DOHOME vs. Siam Global House | DOHOME vs. Home Product Center |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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