Correlation Between Auswide Bank and Dicker Data
Can any of the company-specific risk be diversified away by investing in both Auswide Bank 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 Auswide Bank and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auswide Bank and Dicker Data, you can compare the effects of market volatilities on Auswide Bank 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 Auswide Bank with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auswide Bank and Dicker Data.
Diversification Opportunities for Auswide Bank and Dicker Data
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Auswide and Dicker is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Auswide Bank and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Auswide Bank 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 Auswide Bank 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 has no effect on the direction of Auswide Bank i.e., Auswide Bank and Dicker Data go up and down completely randomly.
Pair Corralation between Auswide Bank and Dicker Data
Assuming the 90 days trading horizon Auswide Bank is expected to under-perform the Dicker Data. But the stock apears to be less risky and, when comparing its historical volatility, Auswide Bank is 1.55 times less risky than Dicker Data. The stock trades about -0.01 of its potential returns per unit of risk. The Dicker Data is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 932.00 in Dicker Data on September 3, 2024 and sell it today you would lose (81.00) from holding Dicker Data or give up 8.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auswide Bank vs. Dicker Data
Performance |
| Timeline |
| Auswide Bank |
| Dicker Data |
Auswide Bank and Dicker Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auswide Bank and Dicker Data
The main advantage of trading using opposite Auswide Bank and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auswide Bank 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.| Auswide Bank vs. Audio Pixels Holdings | Auswide Bank vs. Iodm | Auswide Bank vs. TTG Fintech | Auswide Bank vs. Mantle Minerals Limited |
| Dicker Data vs. Stelar Metals | Dicker Data vs. MetalsGrove Mining | Dicker Data vs. Perseus Mining | Dicker Data vs. Infomedia |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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