Correlation Between SWISS WATER and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both SWISS WATER and DICKER DATA 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 SWISS WATER and DICKER DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SWISS WATER DECAFFCOFFEE and DICKER DATA LTD, you can compare the effects of market volatilities on SWISS WATER and DICKER DATA 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 SWISS WATER with a short position of DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SWISS WATER and DICKER DATA.
Diversification Opportunities for SWISS WATER and DICKER DATA
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SWISS and DICKER is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SWISS WATER DECAFFCOFFEE and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD and SWISS WATER 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 SWISS WATER DECAFFCOFFEE are associated (or correlated) with DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of SWISS WATER i.e., SWISS WATER and DICKER DATA go up and down completely randomly.
Pair Corralation between SWISS WATER and DICKER DATA
Assuming the 90 days horizon SWISS WATER DECAFFCOFFEE is expected to generate 1.04 times more return on investment than DICKER DATA. However, SWISS WATER is 1.04 times more volatile than DICKER DATA LTD. It trades about 0.02 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about 0.02 per unit of risk. If you would invest 187.00 in SWISS WATER DECAFFCOFFEE on November 28, 2024 and sell it today you would earn a total of 29.00 from holding SWISS WATER DECAFFCOFFEE or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SWISS WATER DECAFFCOFFEE vs. DICKER DATA LTD
Performance |
| Timeline |
| SWISS WATER DECAFFCOFFEE |
| DICKER DATA LTD |
SWISS WATER and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SWISS WATER and DICKER DATA
The main advantage of trading using opposite SWISS WATER and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SWISS WATER position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA's long position.| SWISS WATER vs. MOVIE GAMES SA | SWISS WATER vs. Mitsui Chemicals | SWISS WATER vs. QINGCI GAMES INC | SWISS WATER vs. OURGAME INTHOLDL 00005 |
| DICKER DATA vs. PennantPark Investment | DICKER DATA vs. New Residential Investment | DICKER DATA vs. Cogent Communications Holdings | DICKER DATA vs. Spirent Communications plc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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