Correlation Between Dexus Convenience and Microequities Asset
Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and Microequities Asset 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 Microequities Asset 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 Microequities Asset Management, you can compare the effects of market volatilities on Dexus Convenience and Microequities Asset 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 Microequities Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and Microequities Asset.
Diversification Opportunities for Dexus Convenience and Microequities Asset
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dexus and Microequities is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and Microequities Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microequities Asset 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 Microequities Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microequities Asset has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and Microequities Asset go up and down completely randomly.
Pair Corralation between Dexus Convenience and Microequities Asset
Assuming the 90 days trading horizon Dexus Convenience Retail is expected to generate 0.5 times more return on investment than Microequities Asset. However, Dexus Convenience Retail is 1.98 times less risky than Microequities Asset. It trades about 0.03 of its potential returns per unit of risk. Microequities Asset Management is currently generating about 0.01 per unit of risk. If you would invest 237.00 in Dexus Convenience Retail on November 9, 2024 and sell it today you would earn a total of 50.00 from holding Dexus Convenience Retail or generate 21.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dexus Convenience Retail vs. Microequities Asset Management
Performance |
| Timeline |
| Dexus Convenience Retail |
| Microequities Asset |
Dexus Convenience and Microequities Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexus Convenience and Microequities Asset
The main advantage of trading using opposite Dexus Convenience and Microequities Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexus Convenience position performs unexpectedly, Microequities Asset 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 Microequities Asset will offset losses from the drop in Microequities Asset's long position.| Dexus Convenience vs. Scentre Group | Dexus Convenience vs. Vicinity Centres Re | Dexus Convenience vs. Charter Hall Retail | Dexus Convenience vs. Cromwell Property Group |
| Microequities Asset vs. Aneka Tambang Tbk | Microequities Asset vs. Macquarie Group | Microequities Asset vs. Commonwealth Bank | Microequities Asset vs. Commonwealth Bank of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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