Correlation Between Dexus Convenience and Capstone Copper

Can any of the company-specific risk be diversified away by investing in both Dexus Convenience and Capstone Copper 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 Capstone Copper 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 Capstone Copper Corp, you can compare the effects of market volatilities on Dexus Convenience and Capstone Copper 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 Capstone Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexus Convenience and Capstone Copper.

Diversification Opportunities for Dexus Convenience and Capstone Copper

0.41

Correlation Coefficient

Dexus Convenience  Capstone Copper

Very weak diversification

The 3 months correlation between Dexus and Capstone is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dexus Convenience Retail and Capstone Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Copper Corp 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 Capstone Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Copper Corp has no effect on the direction of Dexus Convenience i.e., Dexus Convenience and Capstone Copper go up and down completely randomly.

Pair Corralation between Dexus Convenience and Capstone Copper

Assuming the 90 days trading horizon Dexus Convenience is expected to generate 13.15 times less return on investment than Capstone Copper. But when comparing it to its historical volatility, Dexus Convenience Retail is 2.91 times less risky than Capstone Copper. It trades about 0.04 of its potential returns per unit of risk. Capstone Copper Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  662.00  in Capstone Copper Corp on April 20, 2025 and sell it today you would earn a total of  211.00  from holding Capstone Copper Corp or generate 31.87% return on investment over 90 days.

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

Dexus Convenience Retail  vs.  Capstone Copper Corp

Dexus Convenience Retail

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dexus Convenience Retail are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Dexus Convenience is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Capstone Copper Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Capstone Copper Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, Capstone Copper unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dexus Convenience and Capstone Copper

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

The idea behind Dexus Convenience Retail and Capstone Copper Corp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.