Correlation Between Propel Holdings and Dexterra
Can any of the company-specific risk be diversified away by investing in both Propel Holdings and Dexterra 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 Propel Holdings and Dexterra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Propel Holdings and Dexterra Group, you can compare the effects of market volatilities on Propel Holdings and Dexterra 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 Propel Holdings with a short position of Dexterra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Propel Holdings and Dexterra.
Diversification Opportunities for Propel Holdings and Dexterra
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Propel and Dexterra is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Propel Holdings and Dexterra Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexterra Group and Propel Holdings 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 Propel Holdings are associated (or correlated) with Dexterra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexterra Group has no effect on the direction of Propel Holdings i.e., Propel Holdings and Dexterra go up and down completely randomly.
Pair Corralation between Propel Holdings and Dexterra
Assuming the 90 days trading horizon Propel Holdings is expected to generate 2.53 times more return on investment than Dexterra. However, Propel Holdings is 2.53 times more volatile than Dexterra Group. It trades about 0.08 of its potential returns per unit of risk. Dexterra Group is currently generating about 0.03 per unit of risk. If you would invest 3,635 in Propel Holdings on November 3, 2024 and sell it today you would earn a total of 219.00 from holding Propel Holdings or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Propel Holdings vs. Dexterra Group
Performance |
| Timeline |
| Propel Holdings |
| Dexterra Group |
Propel Holdings and Dexterra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Propel Holdings and Dexterra
The main advantage of trading using opposite Propel Holdings and Dexterra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Propel Holdings position performs unexpectedly, Dexterra 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 Dexterra will offset losses from the drop in Dexterra's long position.| Propel Holdings vs. Sangoma Technologies Corp | Propel Holdings vs. Vitalhub Corp | Propel Holdings vs. Converge Technology Solutions |
| Dexterra vs. Doman Building Materials | Dexterra vs. Topaz Energy Corp | Dexterra vs. Bird Construction | Dexterra vs. Alaris Equity Partners |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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