Correlation Between Dexus Convenience and Retail Food
Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and Retail Food 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 Retail Food 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 Retail Food Group, you can compare the effects of market volatilities on Dexus Convenience and Retail Food 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 Retail Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and Retail Food.
Diversification Opportunities for Dexus Convenience and Retail Food
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dexus and Retail is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and Retail Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Food Group 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 Retail Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Food Group has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and Retail Food go up and down completely randomly.
Pair Corralation between Dexus Convenience and Retail Food
Assuming the 90 days trading horizon Dexus Convenience Retail is expected to generate 0.44 times more return on investment than Retail Food. However, Dexus Convenience Retail is 2.27 times less risky than Retail Food. It trades about 0.04 of its potential returns per unit of risk. Retail Food Group is currently generating about 0.0 per unit of risk. If you would invest 233.00 in Dexus Convenience Retail on November 1, 2024 and sell it today you would earn a total of 51.00 from holding Dexus Convenience Retail or generate 21.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dexus Convenience Retail vs. Retail Food Group
Performance |
| Timeline |
| Dexus Convenience Retail |
| Retail Food Group |
Dexus Convenience and Retail Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexus Convenience and Retail Food
The main advantage of trading using opposite Dexus Convenience and Retail Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexus Convenience position performs unexpectedly, Retail Food 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 Retail Food will offset losses from the drop in Retail Food's long position.| Dexus Convenience vs. DY6 Metals | Dexus Convenience vs. Pinnacle Investment Management | Dexus Convenience vs. Steamships Trading | Dexus Convenience vs. K2 Asset Management |
| Retail Food vs. Diversified United Investment | Retail Food vs. A1 Investments Resources | Retail Food vs. Alternative Investment Trust | Retail Food vs. Hudson Investment Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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