Correlation Between Dexon Technology and Grande Asset
Can any of the company-specific risk be diversified away by investing in both Dexon Technology and Grande Asset 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 Dexon Technology and Grande Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dexon Technology PCL and Grande Asset Hotels, you can compare the effects of market volatilities on Dexon Technology and Grande Asset 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 Dexon Technology with a short position of Grande Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexon Technology and Grande Asset.
Diversification Opportunities for Dexon Technology and Grande Asset
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dexon and Grande is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dexon Technology PCL and Grande Asset Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Asset Hotels and Dexon Technology 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 Dexon Technology PCL are associated (or correlated) with Grande Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Asset Hotels has no effect on the direction of Dexon Technology i.e., Dexon Technology and Grande Asset go up and down completely randomly.
Pair Corralation between Dexon Technology and Grande Asset
Assuming the 90 days trading horizon Dexon Technology PCL is expected to generate 0.22 times more return on investment than Grande Asset. However, Dexon Technology PCL is 4.48 times less risky than Grande Asset. It trades about 0.01 of its potential returns per unit of risk. Grande Asset Hotels is currently generating about -0.01 per unit of risk. If you would invest 156.00 in Dexon Technology PCL on December 2, 2024 and sell it today you would lose (2.00) from holding Dexon Technology PCL or give up 1.28% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dexon Technology PCL vs. Grande Asset Hotels
Performance |
Timeline |
Dexon Technology PCL |
Grande Asset Hotels |
Dexon Technology and Grande Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dexon Technology and Grande Asset
The main advantage of trading using opposite Dexon Technology and Grande Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexon Technology position performs unexpectedly, Grande Asset 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 Grande Asset will offset losses from the drop in Grande Asset's long position.Dexon Technology vs. Namwiwat Medical | Dexon Technology vs. Phatra Leasing Public | Dexon Technology vs. Golden Ventures Leasehold | Dexon Technology vs. Shangri La Hotel Public |
Grande Asset vs. PTT OIL RETAIL | Grande Asset vs. Global Green Chemicals | Grande Asset vs. CPN Retail Growth | Grande Asset vs. JKN Global Media |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |