Correlation Between Steamships Trading and Dexus Convenience
Can any of the company-specific risk be diversified away by investing in both Steamships Trading and Dexus Convenience 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 Steamships Trading and Dexus Convenience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steamships Trading and Dexus Convenience Retail, you can compare the effects of market volatilities on Steamships Trading and Dexus Convenience 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 Steamships Trading with a short position of Dexus Convenience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steamships Trading and Dexus Convenience.
Diversification Opportunities for Steamships Trading and Dexus Convenience
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Steamships and Dexus is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Steamships Trading and Dexus Convenience Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexus Convenience Retail and Steamships Trading 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 Steamships Trading are associated (or correlated) with Dexus Convenience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexus Convenience Retail has no effect on the direction of Steamships Trading i.e., Steamships Trading and Dexus Convenience go up and down completely randomly.
Pair Corralation between Steamships Trading and Dexus Convenience
Assuming the 90 days trading horizon Steamships Trading is expected to generate 0.25 times more return on investment than Dexus Convenience. However, Steamships Trading is 3.99 times less risky than Dexus Convenience. It trades about 0.21 of its potential returns per unit of risk. Dexus Convenience Retail is currently generating about -0.03 per unit of risk. If you would invest 1,365 in Steamships Trading on November 8, 2024 and sell it today you would earn a total of 25.00 from holding Steamships Trading or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steamships Trading vs. Dexus Convenience Retail
Performance |
| Timeline |
| Steamships Trading |
| Dexus Convenience Retail |
Steamships Trading and Dexus Convenience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steamships Trading and Dexus Convenience
The main advantage of trading using opposite Steamships Trading and Dexus Convenience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steamships Trading position performs unexpectedly, Dexus Convenience 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 Dexus Convenience will offset losses from the drop in Dexus Convenience's long position.| Steamships Trading vs. Dexus Convenience Retail | Steamships Trading vs. Dicker Data | Steamships Trading vs. National Australia Bank | Steamships Trading vs. Qbe Insurance Group |
| Dexus Convenience vs. Westpac Banking | Dexus Convenience vs. Dalaroo Metals | Dexus Convenience vs. Beam Communications Holdings | Dexus Convenience vs. Wt Financial 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |