Correlation Between Dug Technology and Chalice Mining
Can any of the company-specific risk be diversified away by investing in both Dug Technology and Chalice 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 Chalice 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 Chalice Mining Limited, you can compare the effects of market volatilities on Dug Technology and Chalice 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 Chalice Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dug Technology and Chalice Mining.
Diversification Opportunities for Dug Technology and Chalice Mining
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dug and Chalice is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dug Technology and Chalice Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chalice 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 Chalice Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chalice Mining has no effect on the direction of Dug Technology i.e., Dug Technology and Chalice Mining go up and down completely randomly.
Pair Corralation between Dug Technology and Chalice Mining
Assuming the 90 days trading horizon Dug Technology is expected to generate 1.44 times more return on investment than Chalice Mining. However, Dug Technology is 1.44 times more volatile than Chalice Mining Limited. It trades about 0.15 of its potential returns per unit of risk. Chalice Mining Limited is currently generating about 0.13 per unit of risk. If you would invest 133.00 in Dug Technology on October 28, 2024 and sell it today you would earn a total of 16.00 from holding Dug Technology or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dug Technology vs. Chalice Mining Limited
Performance |
| Timeline |
| Dug Technology |
| Chalice Mining |
Dug Technology and Chalice Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dug Technology and Chalice Mining
The main advantage of trading using opposite Dug Technology and Chalice Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dug Technology position performs unexpectedly, Chalice 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 Chalice Mining will offset losses from the drop in Chalice Mining's long position.| Dug Technology vs. Aneka Tambang Tbk | Dug Technology vs. Woolworths | Dug Technology vs. BHP Group Limited | Dug Technology vs. Rio Tinto |
| Chalice Mining vs. ABACUS STORAGE KING | Chalice Mining vs. Ras Technology Holdings | Chalice Mining vs. Change Financial Limited | Chalice Mining vs. Magellan Financial Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets |