Correlation Between Dexus Convenience and Ras Technology
Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and Ras 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 Ras 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 Ras Technology Holdings, you can compare the effects of market volatilities on Dexus Convenience and Ras 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 Ras Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and Ras Technology.
Diversification Opportunities for Dexus Convenience and Ras Technology
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dexus and Ras is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and Ras Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ras Technology Holdings 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 Ras Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ras Technology Holdings has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and Ras Technology go up and down completely randomly.
Pair Corralation between Dexus Convenience and Ras Technology
Assuming the 90 days trading horizon Dexus Convenience Retail is expected to generate 0.44 times more return on investment than Ras Technology. However, Dexus Convenience Retail is 2.25 times less risky than Ras Technology. It trades about 0.09 of its potential returns per unit of risk. Ras Technology Holdings is currently generating about -0.03 per unit of risk. If you would invest 257.00 in Dexus Convenience Retail on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Dexus Convenience Retail or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dexus Convenience Retail vs. Ras Technology Holdings
Performance |
| Timeline |
| Dexus Convenience Retail |
| Ras Technology Holdings |
Dexus Convenience and Ras Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexus Convenience and Ras Technology
The main advantage of trading using opposite Dexus Convenience and Ras Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexus Convenience position performs unexpectedly, Ras 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 Ras Technology will offset losses from the drop in Ras Technology's long position.| Dexus Convenience vs. Australian Unity Office | Dexus Convenience vs. Champion Iron | Dexus Convenience vs. Ridley | Dexus Convenience vs. Peel Mining |
| Ras Technology vs. PVW Resources | Ras Technology vs. Woolworths | Ras Technology vs. Wesfarmers | Ras Technology vs. Coles 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |