Correlation Between COAST ENTERTAINMENT and Dicker Data
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT 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 COAST ENTERTAINMENT and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COAST ENTERTAINMENT HOLDINGS and Dicker Data, you can compare the effects of market volatilities on COAST ENTERTAINMENT 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 COAST ENTERTAINMENT with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Dicker Data.
Diversification Opportunities for COAST ENTERTAINMENT and Dicker Data
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COAST and Dicker is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and COAST ENTERTAINMENT 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 COAST ENTERTAINMENT HOLDINGS 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 COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Dicker Data go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Dicker Data
Assuming the 90 days trading horizon COAST ENTERTAINMENT is expected to generate 1.71 times less return on investment than Dicker Data. In addition to that, COAST ENTERTAINMENT is 1.29 times more volatile than Dicker Data. It trades about 0.01 of its total potential returns per unit of risk. Dicker Data is currently generating about 0.03 per unit of volatility. If you would invest 740.00 in Dicker Data on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Dicker Data or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Dicker Data
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Dicker Data |
COAST ENTERTAINMENT and Dicker Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Dicker Data
The main advantage of trading using opposite COAST ENTERTAINMENT and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT 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.| COAST ENTERTAINMENT vs. WiseTech Global Limited | COAST ENTERTAINMENT vs. My Foodie Box | COAST ENTERTAINMENT vs. Ras Technology Holdings | COAST ENTERTAINMENT vs. Retail Food Group |
| Dicker Data vs. Aneka Tambang Tbk | Dicker Data vs. BHP Group Limited | Dicker Data vs. Commonwealth Bank | Dicker Data vs. Commonwealth Bank of |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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