Correlation Between Austco Healthcare and Dicker Data
Can any of the company-specific risk be diversified away by investing in both Austco Healthcare 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 Austco Healthcare and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austco Healthcare and Dicker Data, you can compare the effects of market volatilities on Austco Healthcare 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 Austco Healthcare with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austco Healthcare and Dicker Data.
Diversification Opportunities for Austco Healthcare and Dicker Data
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austco and Dicker is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Austco Healthcare and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Austco Healthcare 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 Austco Healthcare 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 Austco Healthcare i.e., Austco Healthcare and Dicker Data go up and down completely randomly.
Pair Corralation between Austco Healthcare and Dicker Data
Assuming the 90 days trading horizon Austco Healthcare is expected to generate 1.75 times more return on investment than Dicker Data. However, Austco Healthcare is 1.75 times more volatile than Dicker Data. It trades about 0.06 of its potential returns per unit of risk. Dicker Data is currently generating about 0.0 per unit of risk. If you would invest 12.00 in Austco Healthcare on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Austco Healthcare or generate 108.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Austco Healthcare vs. Dicker Data
Performance |
| Timeline |
| Austco Healthcare |
| Dicker Data |
Austco Healthcare and Dicker Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austco Healthcare and Dicker Data
The main advantage of trading using opposite Austco Healthcare and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austco Healthcare 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.| Austco Healthcare vs. Readytech Holdings | Austco Healthcare vs. Aussie Broadband | Austco Healthcare vs. COAST ENTERTAINMENT HOLDINGS | Austco Healthcare vs. Advanced Braking Technology |
| Dicker Data vs. PVW Resources | Dicker Data vs. Woolworths | Dicker Data vs. Wesfarmers | Dicker Data vs. Coles Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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