Correlation Between Dug Technology and Suncorp
Can any of the company-specific risk be diversified away by investing in both Dug Technology and Suncorp 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 Suncorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dug Technology and Suncorp Group, you can compare the effects of market volatilities on Dug Technology and Suncorp 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 Suncorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dug Technology and Suncorp.
Diversification Opportunities for Dug Technology and Suncorp
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dug and Suncorp is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dug Technology and Suncorp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncorp Group 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 Suncorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncorp Group has no effect on the direction of Dug Technology i.e., Dug Technology and Suncorp go up and down completely randomly.
Pair Corralation between Dug Technology and Suncorp
Assuming the 90 days trading horizon Dug Technology is expected to under-perform the Suncorp. In addition to that, Dug Technology is 2.42 times more volatile than Suncorp Group. It trades about -0.07 of its total potential returns per unit of risk. Suncorp Group is currently generating about 0.15 per unit of volatility. If you would invest 1,354 in Suncorp Group on November 3, 2024 and sell it today you would earn a total of 727.00 from holding Suncorp Group or generate 53.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dug Technology vs. Suncorp Group
Performance |
| Timeline |
| Dug Technology |
| Suncorp Group |
Dug Technology and Suncorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dug Technology and Suncorp
The main advantage of trading using opposite Dug Technology and Suncorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dug Technology position performs unexpectedly, Suncorp 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 Suncorp will offset losses from the drop in Suncorp's long position.| Dug Technology vs. Computershare | Dug Technology vs. Aurelia Metals | Dug Technology vs. Centaurus Metals | Dug Technology vs. Cleanaway Waste Management |
| Suncorp vs. Hudson Investment Group | Suncorp vs. Sandon Capital Investments | Suncorp vs. The Environmental Group | Suncorp vs. K2 Asset Management |
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 Stocks Directory module to find actively traded stocks across global markets.
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