Correlation Between Dexus Convenience and Sayona Mining
Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and Sayona Mining 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 Sayona Mining 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 Sayona Mining, you can compare the effects of market volatilities on Dexus Convenience and Sayona Mining 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 Sayona Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and Sayona Mining.
Diversification Opportunities for Dexus Convenience and Sayona Mining
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dexus and Sayona is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and Sayona Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sayona Mining 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 Sayona Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sayona Mining has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and Sayona Mining go up and down completely randomly.
Pair Corralation between Dexus Convenience and Sayona Mining
Assuming the 90 days trading horizon Dexus Convenience Retail is expected to generate 0.23 times more return on investment than Sayona Mining. However, Dexus Convenience Retail is 4.4 times less risky than Sayona Mining. It trades about 0.0 of its potential returns per unit of risk. Sayona Mining is currently generating about -0.17 per unit of risk. If you would invest 283.00 in Dexus Convenience Retail on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Dexus Convenience Retail or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dexus Convenience Retail vs. Sayona Mining
Performance |
| Timeline |
| Dexus Convenience Retail |
| Sayona Mining |
Dexus Convenience and Sayona Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexus Convenience and Sayona Mining
The main advantage of trading using opposite Dexus Convenience and Sayona Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexus Convenience position performs unexpectedly, Sayona Mining 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 Sayona Mining will offset losses from the drop in Sayona Mining's long position.| Dexus Convenience vs. Hammer Metals | Dexus Convenience vs. Carlton Investments | Dexus Convenience vs. Microequities Asset Management | Dexus Convenience vs. K2 Asset Management |
| Sayona Mining vs. Djerriwarrh Investments | Sayona Mining vs. BKI Investment | Sayona Mining vs. Regis Healthcare | Sayona Mining vs. Clime Investment Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |