Correlation Between DICKER DATA and TERADATA
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and TERADATA 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 DICKER DATA and TERADATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DICKER DATA LTD and TERADATA, you can compare the effects of market volatilities on DICKER DATA and TERADATA 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 DICKER DATA with a short position of TERADATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and TERADATA.
Diversification Opportunities for DICKER DATA and TERADATA
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and TERADATA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and TERADATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TERADATA and DICKER DATA 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 DICKER DATA LTD are associated (or correlated) with TERADATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TERADATA has no effect on the direction of DICKER DATA i.e., DICKER DATA and TERADATA go up and down completely randomly.
Pair Corralation between DICKER DATA and TERADATA
Assuming the 90 days horizon DICKER DATA LTD is expected to under-perform the TERADATA. In addition to that, DICKER DATA is 1.4 times more volatile than TERADATA. It trades about -0.04 of its total potential returns per unit of risk. TERADATA is currently generating about 0.18 per unit of volatility. If you would invest 2,540 in TERADATA on September 3, 2024 and sell it today you would earn a total of 400.00 from holding TERADATA or generate 15.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKER DATA LTD vs. TERADATA
Performance |
| Timeline |
| DICKER DATA LTD |
| TERADATA |
DICKER DATA and TERADATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and TERADATA
The main advantage of trading using opposite DICKER DATA and TERADATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, TERADATA 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 TERADATA will offset losses from the drop in TERADATA's long position.| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. INNELEC MULTIMMINHEO153 |
| TERADATA vs. PKSHA TECHNOLOGY INC | TERADATA vs. DXC Technology Co | TERADATA vs. Sunny Optical Technology | TERADATA vs. MAVEN WIRELESS SWEDEN |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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