Correlation Between DICKER DATA and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and EVS Broadcast 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 EVS Broadcast 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 EVS Broadcast Equipment, you can compare the effects of market volatilities on DICKER DATA and EVS Broadcast 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 EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and EVS Broadcast.
Diversification Opportunities for DICKER DATA and EVS Broadcast
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and EVS is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment 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 EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of DICKER DATA i.e., DICKER DATA and EVS Broadcast go up and down completely randomly.
Pair Corralation between DICKER DATA and EVS Broadcast
Assuming the 90 days horizon DICKER DATA LTD is expected to under-perform the EVS Broadcast. In addition to that, DICKER DATA is 1.57 times more volatile than EVS Broadcast Equipment. It trades about 0.0 of its total potential returns per unit of risk. EVS Broadcast Equipment is currently generating about 0.06 per unit of volatility. If you would invest 1,938 in EVS Broadcast Equipment on October 28, 2024 and sell it today you would earn a total of 1,097 from holding EVS Broadcast Equipment or generate 56.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKER DATA LTD vs. EVS Broadcast Equipment
Performance |
| Timeline |
| DICKER DATA LTD |
| EVS Broadcast Equipment |
DICKER DATA and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and EVS Broadcast
The main advantage of trading using opposite DICKER DATA and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast's long position.| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. Esprinet SpA | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. FORTEC Elektronik AG |
| EVS Broadcast vs. GAMESTOP | EVS Broadcast vs. FAIR ISAAC | EVS Broadcast vs. PENN NATL GAMING | EVS Broadcast vs. GigaMedia |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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