Correlation Between CyberAgent and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both CyberAgent 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 CyberAgent and DICKER DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberAgent and DICKER DATA LTD, you can compare the effects of market volatilities on CyberAgent 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 CyberAgent with a short position of DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberAgent and DICKER DATA.
Diversification Opportunities for CyberAgent and DICKER DATA
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CyberAgent and DICKER is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CyberAgent 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 CyberAgent 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 CyberAgent 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 CyberAgent i.e., CyberAgent and DICKER DATA go up and down completely randomly.
Pair Corralation between CyberAgent and DICKER DATA
Assuming the 90 days horizon CyberAgent is expected to generate 1.07 times more return on investment than DICKER DATA. However, CyberAgent is 1.07 times more volatile than DICKER DATA LTD. It trades about 0.05 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about -0.03 per unit of risk. If you would invest 520.00 in CyberAgent on September 2, 2024 and sell it today you would earn a total of 130.00 from holding CyberAgent or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CyberAgent vs. DICKER DATA LTD
Performance |
| Timeline |
| CyberAgent |
| DICKER DATA LTD |
CyberAgent and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberAgent and DICKER DATA
The main advantage of trading using opposite CyberAgent and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberAgent 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.| CyberAgent vs. Automatic Data Processing | CyberAgent vs. REVO INSURANCE SPA | CyberAgent vs. The Hanover Insurance | CyberAgent vs. Datadog |
| DICKER DATA vs. Chongqing Machinery Electric | DICKER DATA vs. Australian Agricultural | DICKER DATA vs. ALGOMA STEEL GROUP | DICKER DATA vs. Caltagirone SpA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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