Correlation Between Dexus Convenience and ABACUS STORAGE
Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and ABACUS STORAGE 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 Dexus Convenience and ABACUS STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dexus Convenience Retail and ABACUS STORAGE KING, you can compare the effects of market volatilities on Dexus Convenience and ABACUS STORAGE 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 Dexus Convenience with a short position of ABACUS STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and ABACUS STORAGE.
Diversification Opportunities for Dexus Convenience and ABACUS STORAGE
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dexus and ABACUS is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and ABACUS STORAGE KING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABACUS STORAGE KING and Dexus Convenience 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 Dexus Convenience Retail are associated (or correlated) with ABACUS STORAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABACUS STORAGE KING has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and ABACUS STORAGE go up and down completely randomly.
Pair Corralation between Dexus Convenience and ABACUS STORAGE
Assuming the 90 days trading horizon Dexus Convenience is expected to generate 56.37 times less return on investment than ABACUS STORAGE. But when comparing it to its historical volatility, Dexus Convenience Retail is 38.82 times less risky than ABACUS STORAGE. It trades about 0.03 of its potential returns per unit of risk. ABACUS STORAGE KING is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 125.00 in ABACUS STORAGE KING on October 15, 2024 and sell it today you would lose (10.00) from holding ABACUS STORAGE KING or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 74.15% |
| Values | Daily Returns |
Dexus Convenience Retail vs. ABACUS STORAGE KING
Performance |
| Timeline |
| Dexus Convenience Retail |
| ABACUS STORAGE KING |
Dexus Convenience and ABACUS STORAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexus Convenience and ABACUS STORAGE
The main advantage of trading using opposite Dexus Convenience and ABACUS STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexus Convenience position performs unexpectedly, ABACUS STORAGE 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 ABACUS STORAGE will offset losses from the drop in ABACUS STORAGE's long position.| Dexus Convenience vs. Queste Communications | Dexus Convenience vs. Collins Foods | Dexus Convenience vs. Retail Food Group | Dexus Convenience vs. Firstwave Cloud Technology |
| ABACUS STORAGE vs. Alternative Investment Trust | ABACUS STORAGE vs. National Storage REIT | ABACUS STORAGE vs. Pinnacle Investment Management | ABACUS STORAGE vs. Microequities 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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