Correlation Between Bhiraj Office and Dexon Technology

Can any of the company-specific risk be diversified away by investing in both Bhiraj Office and Dexon Technology 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 Bhiraj Office and Dexon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bhiraj Office Leasehold and Dexon Technology PCL, you can compare the effects of market volatilities on Bhiraj Office and Dexon Technology 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 Bhiraj Office with a short position of Dexon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhiraj Office and Dexon Technology.

Diversification Opportunities for Bhiraj Office and Dexon Technology

0.74

Correlation Coefficient

Bhiraj Office  Dexon Technology

Poor diversification

The 3 months correlation between Bhiraj and Dexon is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bhiraj Office Leasehold and Dexon Technology PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexon Technology PCL and Bhiraj Office 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 Bhiraj Office Leasehold are associated (or correlated) with Dexon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexon Technology PCL has no effect on the direction of Bhiraj Office i.e., Bhiraj Office and Dexon Technology go up and down completely randomly.

Pair Corralation between Bhiraj Office and Dexon Technology

Assuming the 90 days trading horizon Bhiraj Office is expected to generate 1.66 times less return on investment than Dexon Technology. But when comparing it to its historical volatility, Bhiraj Office Leasehold is 2.54 times less risky than Dexon Technology. It trades about 0.09 of its potential returns per unit of risk. Dexon Technology PCL is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  135.00  in Dexon Technology PCL on April 21, 2025 and sell it today you would earn a total of  10.00  from holding Dexon Technology PCL or generate 7.41% return on investment over 90 days.

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

Bhiraj Office Leasehold  vs.  Dexon Technology PCL

Bhiraj Office Leasehold

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bhiraj Office Leasehold are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Bhiraj Office is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Dexon Technology PCL

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dexon Technology PCL are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Dexon Technology may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bhiraj Office and Dexon Technology

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

The idea behind Bhiraj Office Leasehold and Dexon Technology PCL 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.