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
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dynex and Distoken is 0.3. 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 1.9 times less return on investment than Distoken Acquisition. In addition to that, Dynex Capital is 1.56 times more volatile than Distoken Acquisition. It trades about 0.11 of its total potential returns per unit of risk. Distoken Acquisition is currently generating about 0.34 per unit of volatility. If you would invest 1,091 in Distoken Acquisition on August 30, 2024 and sell it today you would earn a total of 46.00 from holding Distoken Acquisition or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| 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. Air Lease | Distoken Acquisition vs. Ryanair Holdings PLC | Distoken Acquisition vs. Mesa Air Group | Distoken Acquisition vs. Aldel Financial II |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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