Correlation Between Group 6 and Dug Technology
Can any of the company-specific risk be diversified away by investing in both Group 6 and Dug 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 Group 6 and Dug Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group 6 Metals and Dug Technology, you can compare the effects of market volatilities on Group 6 and Dug 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 Group 6 with a short position of Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group 6 and Dug Technology.
Diversification Opportunities for Group 6 and Dug Technology
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Group and Dug is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Group 6 Metals and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug Technology and Group 6 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 Group 6 Metals are associated (or correlated) with Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of Group 6 i.e., Group 6 and Dug Technology go up and down completely randomly.
Pair Corralation between Group 6 and Dug Technology
If you would invest 2.50 in Group 6 Metals on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Group 6 Metals 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 |
Group 6 Metals vs. Dug Technology
Performance |
| Timeline |
| Group 6 Metals |
| Dug Technology |
Group 6 and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group 6 and Dug Technology
The main advantage of trading using opposite Group 6 and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group 6 position performs unexpectedly, Dug 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| Group 6 vs. Northern Star Resources | Group 6 vs. Evolution Mining | Group 6 vs. Bluescope Steel | Group 6 vs. Sandfire Resources NL |
| Dug Technology vs. Garda Diversified Ppty | Dug Technology vs. Alternative Investment Trust | Dug Technology vs. Bluescope Steel | Dug Technology 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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