Correlation Between Dexus Convenience and Garda Diversified
Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and Garda Diversified 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 Garda Diversified 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 Garda Diversified Ppty, you can compare the effects of market volatilities on Dexus Convenience and Garda Diversified 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 Garda Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and Garda Diversified.
Diversification Opportunities for Dexus Convenience and Garda Diversified
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dexus and Garda is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and Garda Diversified Ppty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garda Diversified Ppty 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 Garda Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garda Diversified Ppty has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and Garda Diversified go up and down completely randomly.
Pair Corralation between Dexus Convenience and Garda Diversified
Assuming the 90 days trading horizon Dexus Convenience Retail is expected to generate 1.52 times more return on investment than Garda Diversified. However, Dexus Convenience is 1.52 times more volatile than Garda Diversified Ppty. It trades about -0.02 of its potential returns per unit of risk. Garda Diversified Ppty is currently generating about -0.05 per unit of risk. If you would invest 297.00 in Dexus Convenience Retail on September 1, 2024 and sell it today you would lose (2.00) from holding Dexus Convenience Retail or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dexus Convenience Retail vs. Garda Diversified Ppty
Performance |
| Timeline |
| Dexus Convenience Retail |
| Garda Diversified Ppty |
Dexus Convenience and Garda Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexus Convenience and Garda Diversified
The main advantage of trading using opposite Dexus Convenience and Garda Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexus Convenience position performs unexpectedly, Garda Diversified 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 Garda Diversified will offset losses from the drop in Garda Diversified's long position.| Dexus Convenience vs. Wt Financial Group | Dexus Convenience vs. Prime Financial Group | Dexus Convenience vs. Pioneer Credit | Dexus Convenience vs. Macquarie Bank Limited |
| Garda Diversified vs. Truscott Mining Corp | Garda Diversified vs. Metro Mining | Garda Diversified vs. Aspire Mining | Garda Diversified vs. Queste Communications |
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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