Correlation Between Dexus Convenience and Group 6
Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and Group 6 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 Group 6 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 Group 6 Metals, you can compare the effects of market volatilities on Dexus Convenience and Group 6 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 Group 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and Group 6.
Diversification Opportunities for Dexus Convenience and Group 6
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dexus and Group is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and Group 6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 6 Metals 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 Group 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 6 Metals has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and Group 6 go up and down completely randomly.
Pair Corralation between Dexus Convenience and Group 6
Assuming the 90 days trading horizon Dexus Convenience Retail is expected to generate 0.24 times more return on investment than Group 6. However, Dexus Convenience Retail is 4.22 times less risky than Group 6. It trades about 0.04 of its potential returns per unit of risk. Group 6 Metals is currently generating about -0.01 per unit of risk. If you would invest 269.00 in Dexus Convenience Retail on November 7, 2024 and sell it today you would earn a total of 14.00 from holding Dexus Convenience Retail or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dexus Convenience Retail vs. Group 6 Metals
Performance |
| Timeline |
| Dexus Convenience Retail |
| Group 6 Metals |
Dexus Convenience and Group 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexus Convenience and Group 6
The main advantage of trading using opposite Dexus Convenience and Group 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexus Convenience position performs unexpectedly, Group 6 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 Group 6 will offset losses from the drop in Group 6's long position.| Dexus Convenience vs. Actinogen Medical | Dexus Convenience vs. Aurelia Metals | Dexus Convenience vs. AiMedia Technologies | Dexus Convenience vs. ARN Media Limited |
| Group 6 vs. Norfolk Metals | Group 6 vs. Perseus Mining | Group 6 vs. Falcon Metals | Group 6 vs. Stelar Metals |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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