Correlation Between DICKER DATA and GRUPO CARSO-A1
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and GRUPO CARSO-A1 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 GRUPO CARSO-A1 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 GRUPO CARSO A1, you can compare the effects of market volatilities on DICKER DATA and GRUPO CARSO-A1 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 GRUPO CARSO-A1. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and GRUPO CARSO-A1.
Diversification Opportunities for DICKER DATA and GRUPO CARSO-A1
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DICKER and GRUPO is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and GRUPO CARSO A1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO CARSO A1 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 GRUPO CARSO-A1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO CARSO A1 has no effect on the direction of DICKER DATA i.e., DICKER DATA and GRUPO CARSO-A1 go up and down completely randomly.
Pair Corralation between DICKER DATA and GRUPO CARSO-A1
Assuming the 90 days horizon DICKER DATA LTD is expected to under-perform the GRUPO CARSO-A1. But the stock apears to be less risky and, when comparing its historical volatility, DICKER DATA LTD is 1.62 times less risky than GRUPO CARSO-A1. The stock trades about -0.01 of its potential returns per unit of risk. The GRUPO CARSO A1 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 475.00 in GRUPO CARSO A1 on September 1, 2024 and sell it today you would earn a total of 90.00 from holding GRUPO CARSO A1 or generate 18.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKER DATA LTD vs. GRUPO CARSO A1
Performance |
| Timeline |
| DICKER DATA LTD |
| GRUPO CARSO A1 |
DICKER DATA and GRUPO CARSO-A1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and GRUPO CARSO-A1
The main advantage of trading using opposite DICKER DATA and GRUPO CARSO-A1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, GRUPO CARSO-A1 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 GRUPO CARSO-A1 will offset losses from the drop in GRUPO CARSO-A1's long position.| DICKER DATA vs. Japan Post Insurance | DICKER DATA vs. HANOVER INSURANCE | DICKER DATA vs. QBE Insurance Group | DICKER DATA vs. Selective Insurance Group |
| GRUPO CARSO-A1 vs. CarsalesCom | GRUPO CARSO-A1 vs. Elmos Semiconductor SE | GRUPO CARSO-A1 vs. BE Semiconductor Industries | GRUPO CARSO-A1 vs. INTER CARS SA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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