Correlation Between Dynex Capital and Distoken Acquisition
Can any of the company-specific risk be diversified away by investing in both Dynex Capital and Distoken Acquisition 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 Dynex Capital and Distoken Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynex Capital and Distoken Acquisition, you can compare the effects of market volatilities on Dynex Capital and Distoken Acquisition 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 Dynex Capital with a short position of Distoken Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Distoken Acquisition.
Diversification Opportunities for Dynex Capital and Distoken Acquisition
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dynex and Distoken is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Distoken Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Distoken Acquisition and Dynex Capital 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 Dynex Capital are associated (or correlated) with Distoken Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Distoken Acquisition has no effect on the direction of Dynex Capital i.e., Dynex Capital and Distoken Acquisition go up and down completely randomly.
Pair Corralation between Dynex Capital and Distoken Acquisition
Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 2.84 times more return on investment than Distoken Acquisition. However, Dynex Capital is 2.84 times more volatile than Distoken Acquisition. It trades about 0.1 of its potential returns per unit of risk. Distoken Acquisition is currently generating about 0.07 per unit of risk. If you would invest 1,134 in Dynex Capital on October 26, 2024 and sell it today you would earn a total of 126.00 from holding Dynex Capital or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Dynex Capital vs. Distoken Acquisition
Performance |
| Timeline |
| Dynex Capital |
| Distoken Acquisition |
Dynex Capital and Distoken Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynex Capital and Distoken Acquisition
The main advantage of trading using opposite Dynex Capital and Distoken Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital position performs unexpectedly, Distoken Acquisition 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 Distoken Acquisition will offset losses from the drop in Distoken Acquisition's long position.| Dynex Capital vs. Ellington Residential Mortgage | Dynex Capital vs. Orchid Island Capital | Dynex Capital vs. ARMOUR Residential REIT | Dynex Capital vs. Ellington Financial |
| Distoken Acquisition vs. MPLX LP | Distoken Acquisition vs. Monster Beverage Corp | Distoken Acquisition vs. Verra Mobility Corp | Distoken Acquisition vs. Ambev SA ADR |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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