Correlation Between DY6 Metals and Super Retail
Can any of the company-specific risk be diversified away by investing in both DY6 Metals and Super Retail 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 DY6 Metals and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DY6 Metals and Super Retail Group, you can compare the effects of market volatilities on DY6 Metals and Super Retail 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 DY6 Metals with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of DY6 Metals and Super Retail.
Diversification Opportunities for DY6 Metals and Super Retail
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DY6 and Super is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding DY6 Metals and Super Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Retail Group and DY6 Metals 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 DY6 Metals are associated (or correlated) with Super Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Retail Group has no effect on the direction of DY6 Metals i.e., DY6 Metals and Super Retail go up and down completely randomly.
Pair Corralation between DY6 Metals and Super Retail
Assuming the 90 days trading horizon DY6 Metals is expected to generate 13.01 times more return on investment than Super Retail. However, DY6 Metals is 13.01 times more volatile than Super Retail Group. It trades about 0.03 of its potential returns per unit of risk. Super Retail Group is currently generating about 0.02 per unit of risk. If you would invest 6.30 in DY6 Metals on November 3, 2024 and sell it today you would lose (2.30) from holding DY6 Metals or give up 36.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DY6 Metals vs. Super Retail Group
Performance |
| Timeline |
| DY6 Metals |
| Super Retail Group |
DY6 Metals and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DY6 Metals and Super Retail
The main advantage of trading using opposite DY6 Metals and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DY6 Metals position performs unexpectedly, Super Retail 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 Super Retail will offset losses from the drop in Super Retail's long position.| DY6 Metals vs. Platinum Asia Investments | DY6 Metals vs. Alternative Investment Trust | DY6 Metals vs. Macquarie Technology Group | DY6 Metals vs. Pinnacle Investment Management |
| Super Retail vs. Dicker Data | Super Retail vs. Beam Communications Holdings | Super Retail vs. Chalice Mining Limited | Super Retail vs. Globe Metals Mining |
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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