Correlation Between Dexus Convenience and Prodigy Gold
Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and Prodigy Gold 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 Dexus Convenience and Prodigy Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dexus Convenience Retail and Prodigy Gold NL, you can compare the effects of market volatilities on Dexus Convenience and Prodigy Gold 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 Dexus Convenience with a short position of Prodigy Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and Prodigy Gold.
Diversification Opportunities for Dexus Convenience and Prodigy Gold
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dexus and Prodigy is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and Prodigy Gold NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodigy Gold NL and Dexus Convenience 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 Dexus Convenience Retail are associated (or correlated) with Prodigy Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodigy Gold NL has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and Prodigy Gold go up and down completely randomly.
Pair Corralation between Dexus Convenience and Prodigy Gold
If you would invest 289.00 in Dexus Convenience Retail on October 8, 2024 and sell it today you would earn a total of 6.00 from holding Dexus Convenience Retail or generate 2.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dexus Convenience Retail vs. Prodigy Gold NL
Performance |
Timeline |
Dexus Convenience Retail |
Prodigy Gold NL |
Dexus Convenience and Prodigy Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dexus Convenience and Prodigy Gold
The main advantage of trading using opposite Dexus Convenience and Prodigy Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexus Convenience position performs unexpectedly, Prodigy Gold 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 Prodigy Gold will offset losses from the drop in Prodigy Gold's long position.Dexus Convenience vs. Charter Hall Retail | Dexus Convenience vs. Australian Unity Office | Dexus Convenience vs. Champion Iron | Dexus Convenience vs. Peel Mining |
Prodigy Gold vs. Bailador Technology Invest | Prodigy Gold vs. Ainsworth Game Technology | Prodigy Gold vs. Chalice Mining Limited | Prodigy Gold vs. Truscott Mining Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |