Correlation Between Growthpoint Properties and Dipula Income
Can any of the company-specific risk be diversified away by investing in both Growthpoint Properties and Dipula Income 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 Growthpoint Properties and Dipula Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growthpoint Properties and Dipula Income, you can compare the effects of market volatilities on Growthpoint Properties and Dipula Income 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 Growthpoint Properties with a short position of Dipula Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and Dipula Income.
Diversification Opportunities for Growthpoint Properties and Dipula Income
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Growthpoint and Dipula is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and Dipula Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dipula Income and Growthpoint Properties 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 Growthpoint Properties are associated (or correlated) with Dipula Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dipula Income has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and Dipula Income go up and down completely randomly.
Pair Corralation between Growthpoint Properties and Dipula Income
Assuming the 90 days trading horizon Growthpoint Properties is expected to generate 0.67 times more return on investment than Dipula Income. However, Growthpoint Properties is 1.5 times less risky than Dipula Income. It trades about 0.03 of its potential returns per unit of risk. Dipula Income is currently generating about -0.05 per unit of risk. If you would invest 108,151 in Growthpoint Properties on February 20, 2024 and sell it today you would earn a total of 1,849 from holding Growthpoint Properties or generate 1.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Growthpoint Properties vs. Dipula Income
Performance |
Timeline |
Growthpoint Properties |
Dipula Income |
Growthpoint Properties and Dipula Income Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Growthpoint Properties and Dipula Income
The main advantage of trading using opposite Growthpoint Properties and Dipula Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, Dipula Income 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 Dipula Income will offset losses from the drop in Dipula Income's long position.Growthpoint Properties vs. Harmony Gold Mining | Growthpoint Properties vs. Buka Investments | Growthpoint Properties vs. RCL Foods | Growthpoint Properties vs. Frontier Transport Holdings |
Dipula Income vs. eMedia Holdings Limited | Dipula Income vs. Buka Investments | Dipula Income vs. E Media Holdings | Dipula Income vs. Safari Investments RSA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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