Correlation Between Charter Hall and Dicker Data
Can any of the company-specific risk be diversified away by investing in both Charter Hall 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 Charter Hall and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charter Hall Education and Dicker Data, you can compare the effects of market volatilities on Charter Hall 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 Charter Hall with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Hall and Dicker Data.
Diversification Opportunities for Charter Hall and Dicker Data
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Charter and Dicker is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Charter Hall Education and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Charter Hall 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 Charter Hall Education 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 Charter Hall i.e., Charter Hall and Dicker Data go up and down completely randomly.
Pair Corralation between Charter Hall and Dicker Data
Assuming the 90 days trading horizon Charter Hall Education is expected to generate 0.96 times more return on investment than Dicker Data. However, Charter Hall Education is 1.05 times less risky than Dicker Data. It trades about 0.0 of its potential returns per unit of risk. Dicker Data is currently generating about -0.07 per unit of risk. If you would invest 268.00 in Charter Hall Education on September 2, 2024 and sell it today you would lose (1.00) from holding Charter Hall Education or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charter Hall Education vs. Dicker Data
Performance |
| Timeline |
| Charter Hall Education |
| Dicker Data |
Charter Hall and Dicker Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charter Hall and Dicker Data
The main advantage of trading using opposite Charter Hall and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Hall 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.| Charter Hall vs. Scentre Group | Charter Hall vs. Vicinity Centres Re | Charter Hall vs. Charter Hall Retail | Charter Hall vs. Cromwell Property Group |
| Dicker Data vs. Accent Resources NL | Dicker Data vs. Hutchison Telecommunications | Dicker Data vs. Energy Resources | Dicker Data vs. GO2 People |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |