Correlation Between Dug Technology and Aspire Mining
Can any of the company-specific risk be diversified away by investing in both Dug Technology and Aspire 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 Dug Technology and Aspire Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dug Technology and Aspire Mining, you can compare the effects of market volatilities on Dug Technology and Aspire 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 Dug Technology with a short position of Aspire Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dug Technology and Aspire Mining.
Diversification Opportunities for Dug Technology and Aspire Mining
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dug and Aspire is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dug Technology and Aspire Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspire Mining and Dug 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 Dug Technology are associated (or correlated) with Aspire Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspire Mining has no effect on the direction of Dug Technology i.e., Dug Technology and Aspire Mining go up and down completely randomly.
Pair Corralation between Dug Technology and Aspire Mining
Assuming the 90 days trading horizon Dug Technology is expected to generate 0.73 times more return on investment than Aspire Mining. However, Dug Technology is 1.37 times less risky than Aspire Mining. It trades about -0.1 of its potential returns per unit of risk. Aspire Mining is currently generating about -0.16 per unit of risk. If you would invest 141.00 in Dug Technology on October 14, 2024 and sell it today you would lose (9.00) from holding Dug Technology or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dug Technology vs. Aspire Mining
Performance |
| Timeline |
| Dug Technology |
| Aspire Mining |
Dug Technology and Aspire Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dug Technology and Aspire Mining
The main advantage of trading using opposite Dug Technology and Aspire Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dug Technology position performs unexpectedly, Aspire 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 Aspire Mining will offset losses from the drop in Aspire Mining's long position.| Dug Technology vs. Sandon Capital Investments | Dug Technology vs. Zoom2u Technologies | Dug Technology vs. Ras Technology Holdings | Dug Technology vs. K2 Asset Management |
| Aspire Mining vs. Dug Technology | Aspire Mining vs. Ras Technology Holdings | Aspire Mining vs. Premier Investments | Aspire Mining vs. Regal Investment |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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