Correlation Between Dug Technology and Group 6
Can any of the company-specific risk be diversified away by investing in both Dug Technology and Group 6 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 Group 6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dug Technology and Group 6 Metals, you can compare the effects of market volatilities on Dug Technology and Group 6 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 Group 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dug Technology and Group 6.
Diversification Opportunities for Dug Technology and Group 6
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dug and Group is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dug Technology and Group 6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 6 Metals 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 Group 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 6 Metals has no effect on the direction of Dug Technology i.e., Dug Technology and Group 6 go up and down completely randomly.
Pair Corralation between Dug Technology and Group 6
Assuming the 90 days trading horizon Dug Technology is expected to under-perform the Group 6. But the stock apears to be less risky and, when comparing its historical volatility, Dug Technology is 2.16 times less risky than Group 6. The stock trades about -0.1 of its potential returns per unit of risk. The Group 6 Metals is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3.20 in Group 6 Metals on September 3, 2024 and sell it today you would lose (0.70) from holding Group 6 Metals or give up 21.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dug Technology vs. Group 6 Metals
Performance |
| Timeline |
| Dug Technology |
| Group 6 Metals |
Dug Technology and Group 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dug Technology and Group 6
The main advantage of trading using opposite Dug Technology and Group 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dug Technology position performs unexpectedly, Group 6 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 Group 6 will offset losses from the drop in Group 6's long position.| Dug Technology vs. Commonwealth Bank | Dug Technology vs. Commonwealth Bank of | Dug Technology vs. Champion Iron | Dug Technology vs. iShares Global Healthcare |
| Group 6 vs. Northern Star Resources | Group 6 vs. Evolution Mining | Group 6 vs. Bluescope Steel | Group 6 vs. Aneka Tambang Tbk |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets |