Correlation Between Allegiant Gold and Dream Industrial

Can any of the company-specific risk be diversified away by investing in both Allegiant Gold and Dream Industrial 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 Allegiant Gold and Dream Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Allegiant Gold and Dream Industrial Real, you can compare the effects of market volatilities on Allegiant Gold and Dream Industrial 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 Allegiant Gold with a short position of Dream Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegiant Gold and Dream Industrial.

Diversification Opportunities for Allegiant Gold and Dream Industrial

0.91

Correlation Coefficient

Allegiant Gold  Dream Industrial

Almost no diversification

The 3 months correlation between Allegiant and Dream is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Allegiant Gold and Dream Industrial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Industrial Real and Allegiant Gold 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 Allegiant Gold are associated (or correlated) with Dream Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Industrial Real has no effect on the direction of Allegiant Gold i.e., Allegiant Gold and Dream Industrial go up and down completely randomly.

Pair Corralation between Allegiant Gold and Dream Industrial

Assuming the 90 days trading horizon Allegiant Gold is expected to generate 15.21 times more return on investment than Dream Industrial. However, Allegiant Gold is 15.21 times more volatile than Dream Industrial Real. It trades about 0.19 of its potential returns per unit of risk. Dream Industrial Real is currently generating about 0.19 per unit of risk. If you would invest  14.00  in Allegiant Gold on April 25, 2025 and sell it today you would earn a total of  46.00  from holding Allegiant Gold or generate 328.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Allegiant Gold  vs.  Dream Industrial Real

Allegiant Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Allegiant Gold are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Allegiant Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Dream Industrial Real

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dream Industrial Real are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Dream Industrial sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Allegiant Gold and Dream Industrial

The main advantage of trading using opposite Allegiant Gold and Dream Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegiant Gold position performs unexpectedly, Dream Industrial 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 Dream Industrial will offset losses from the drop in Dream Industrial's long position.

The idea behind Allegiant Gold and Dream Industrial Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.