Correlation Between Dexus Convenience and Dug Technology
Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and Dug Technology 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 Dug Technology 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 Dug Technology, you can compare the effects of market volatilities on Dexus Convenience and Dug Technology 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 Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and Dug Technology.
Diversification Opportunities for Dexus Convenience and Dug Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dexus and Dug is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug Technology 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 Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and Dug Technology go up and down completely randomly.
Pair Corralation between Dexus Convenience and Dug Technology
Assuming the 90 days trading horizon Dexus Convenience Retail is expected to generate 0.41 times more return on investment than Dug Technology. However, Dexus Convenience Retail is 2.43 times less risky than Dug Technology. It trades about 0.03 of its potential returns per unit of risk. Dug Technology is currently generating about -0.11 per unit of risk. If you would invest 266.00 in Dexus Convenience Retail on October 26, 2024 and sell it today you would earn a total of 13.00 from holding Dexus Convenience Retail or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dexus Convenience Retail vs. Dug Technology
Performance |
| Timeline |
| Dexus Convenience Retail |
| Dug Technology |
Dexus Convenience and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexus Convenience and Dug Technology
The main advantage of trading using opposite Dexus Convenience and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexus Convenience position performs unexpectedly, Dug Technology 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| Dexus Convenience vs. Flagship Investments | Dexus Convenience vs. Truscott Mining Corp | Dexus Convenience vs. Pinnacle Investment Management | Dexus Convenience vs. A1 Investments Resources |
| Dug Technology vs. Viva Leisure | Dug Technology vs. Homeco Daily Needs | Dug Technology vs. Epsilon Healthcare | Dug Technology vs. Fisher Paykel Healthcare |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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