Correlation Between DICKER DATA and SHIP HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and SHIP HEALTHCARE 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 SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC, you can compare the effects of market volatilities on DICKER DATA and SHIP HEALTHCARE 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 SHIP HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and SHIP HEALTHCARE.
Diversification Opportunities for DICKER DATA and SHIP HEALTHCARE
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DICKER and SHIP is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and SHIP HEALTHCARE HLDGINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIP HEALTHCARE HLDGINC has no effect on the direction of DICKER DATA i.e., DICKER DATA and SHIP HEALTHCARE go up and down completely randomly.
Pair Corralation between DICKER DATA and SHIP HEALTHCARE
Assuming the 90 days horizon DICKER DATA LTD is expected to generate 1.27 times more return on investment than SHIP HEALTHCARE. However, DICKER DATA is 1.27 times more volatile than SHIP HEALTHCARE HLDGINC. It trades about 0.03 of its potential returns per unit of risk. SHIP HEALTHCARE HLDGINC is currently generating about 0.01 per unit of risk. If you would invest 504.00 in DICKER DATA LTD on September 3, 2024 and sell it today you would earn a total of 6.00 from holding DICKER DATA LTD or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKER DATA LTD vs. SHIP HEALTHCARE HLDGINC
Performance |
| Timeline |
| DICKER DATA LTD |
| SHIP HEALTHCARE HLDGINC |
DICKER DATA and SHIP HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and SHIP HEALTHCARE
The main advantage of trading using opposite DICKER DATA and SHIP HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, SHIP HEALTHCARE 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 SHIP HEALTHCARE will offset losses from the drop in SHIP HEALTHCARE'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 |
| SHIP HEALTHCARE vs. DEVRY EDUCATION GRP | SHIP HEALTHCARE vs. Titan Machinery | SHIP HEALTHCARE vs. CHINA EDUCATION GROUP | SHIP HEALTHCARE vs. United Utilities Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |