Correlation Between WA1 Resources and DUG Technology
Can any of the company-specific risk be diversified away by investing in both WA1 Resources and DUG 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 WA1 Resources and DUG Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WA1 Resources and DUG Technology, you can compare the effects of market volatilities on WA1 Resources and DUG 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 WA1 Resources with a short position of DUG Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of WA1 Resources and DUG Technology.
Diversification Opportunities for WA1 Resources and DUG Technology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WA1 and DUG is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding WA1 Resources and DUG Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUG Technology and WA1 Resources 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 WA1 Resources are associated (or correlated) with DUG Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUG Technology has no effect on the direction of WA1 Resources i.e., WA1 Resources and DUG Technology go up and down completely randomly.
Pair Corralation between WA1 Resources and DUG Technology
Assuming the 90 days trading horizon WA1 Resources is expected to generate 2.87 times less return on investment than DUG Technology. But when comparing it to its historical volatility, WA1 Resources is 1.38 times less risky than DUG Technology. It trades about 0.12 of its potential returns per unit of risk. DUG Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 135.00 in DUG Technology on July 19, 2025 and sell it today you would earn a total of 137.00 from holding DUG Technology or generate 101.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WA1 Resources vs. DUG Technology
Performance |
| Timeline |
| WA1 Resources |
| DUG Technology |
WA1 Resources and DUG Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WA1 Resources and DUG Technology
The main advantage of trading using opposite WA1 Resources and DUG Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WA1 Resources position performs unexpectedly, DUG 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 DUG Technology will offset losses from the drop in DUG Technology's long position.| WA1 Resources vs. Janison Education Group | WA1 Resources vs. Clearvue Technologies | WA1 Resources vs. Sports Entertainment Group | WA1 Resources vs. Skycity Entertainment Group |
| DUG Technology vs. Dexus Convenience Retail | DUG Technology vs. Charter Hall Retail | DUG Technology vs. Sports Entertainment Group | DUG Technology vs. Great Southern Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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