Correlation Between Dug Technology and Ampol
Can any of the company-specific risk be diversified away by investing in both Dug Technology and Ampol 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 Ampol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dug Technology and Ampol, you can compare the effects of market volatilities on Dug Technology and Ampol 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 Ampol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dug Technology and Ampol.
Diversification Opportunities for Dug Technology and Ampol
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dug and Ampol is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dug Technology and Ampol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampol 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 Ampol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampol has no effect on the direction of Dug Technology i.e., Dug Technology and Ampol go up and down completely randomly.
Pair Corralation between Dug Technology and Ampol
Assuming the 90 days trading horizon Dug Technology is expected to under-perform the Ampol. In addition to that, Dug Technology is 2.63 times more volatile than Ampol. It trades about -0.24 of its total potential returns per unit of risk. Ampol is currently generating about -0.06 per unit of volatility. If you would invest 2,807 in Ampol on September 13, 2024 and sell it today you would lose (72.00) from holding Ampol or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dug Technology vs. Ampol
Performance |
| Timeline |
| Dug Technology |
| Ampol |
Dug Technology and Ampol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dug Technology and Ampol
The main advantage of trading using opposite Dug Technology and Ampol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dug Technology position performs unexpectedly, Ampol 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 Ampol will offset losses from the drop in Ampol's long position.| Dug Technology vs. Aneka Tambang Tbk | Dug Technology vs. BHP Group Limited | Dug Technology vs. Commonwealth Bank | Dug Technology vs. Commonwealth Bank of |
| Ampol vs. Strickland Metals | Ampol vs. Dalaroo Metals | Ampol vs. Patriot Battery Metals | Ampol vs. Group 6 Metals |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |