Correlation Between Dimension Computer and Aker Technology
Can any of the company-specific risk be diversified away by investing in both Dimension Computer and Aker 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 Dimension Computer and Aker Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimension Computer Technology and Aker Technology Co, you can compare the effects of market volatilities on Dimension Computer and Aker 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 Dimension Computer with a short position of Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimension Computer and Aker Technology.
Diversification Opportunities for Dimension Computer and Aker Technology
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dimension and Aker is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Dimension Computer Technology and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Technology and Dimension Computer 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 Dimension Computer Technology are associated (or correlated) with Aker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Technology has no effect on the direction of Dimension Computer i.e., Dimension Computer and Aker Technology go up and down completely randomly.
Pair Corralation between Dimension Computer and Aker Technology
Assuming the 90 days trading horizon Dimension Computer Technology is expected to generate 0.8 times more return on investment than Aker Technology. However, Dimension Computer Technology is 1.24 times less risky than Aker Technology. It trades about -0.24 of its potential returns per unit of risk. Aker Technology Co is currently generating about -0.28 per unit of risk. If you would invest 2,515 in Dimension Computer Technology on October 15, 2024 and sell it today you would lose (260.00) from holding Dimension Computer Technology or give up 10.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimension Computer Technology vs. Aker Technology Co
Performance |
| Timeline |
| Dimension Computer |
| Aker Technology |
Dimension Computer and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimension Computer and Aker Technology
The main advantage of trading using opposite Dimension Computer and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimension Computer position performs unexpectedly, Aker 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 Aker Technology will offset losses from the drop in Aker Technology's long position.| Dimension Computer vs. AVerMedia Technologies | Dimension Computer vs. Bright Led Electronics | Dimension Computer vs. Softstar Entertainment | Dimension Computer vs. C Media Electronics |
| Aker Technology vs. Dimension Computer Technology | Aker Technology vs. Kworld Computer Co | Aker Technology vs. Great Computer | Aker Technology vs. Unitech Computer Co |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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