Correlation Between DICKER DATA and SWISS WATER
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and SWISS WATER 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 SWISS WATER 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 SWISS WATER DECAFFCOFFEE, you can compare the effects of market volatilities on DICKER DATA and SWISS WATER 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 SWISS WATER. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and SWISS WATER.
Diversification Opportunities for DICKER DATA and SWISS WATER
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between DICKER and SWISS is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and SWISS WATER DECAFFCOFFEE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWISS WATER DECAFFCOFFEE 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 SWISS WATER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWISS WATER DECAFFCOFFEE has no effect on the direction of DICKER DATA i.e., DICKER DATA and SWISS WATER go up and down completely randomly.
Pair Corralation between DICKER DATA and SWISS WATER
Assuming the 90 days horizon DICKER DATA LTD is expected to generate 1.43 times more return on investment than SWISS WATER. However, DICKER DATA is 1.43 times more volatile than SWISS WATER DECAFFCOFFEE. It trades about 0.03 of its potential returns per unit of risk. SWISS WATER DECAFFCOFFEE is currently generating about -0.12 per unit of risk. If you would invest 499.00 in DICKER DATA LTD on November 28, 2024 and sell it today you would earn a total of 6.00 from holding DICKER DATA LTD or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DICKER DATA LTD vs. SWISS WATER DECAFFCOFFEE
Performance |
| Timeline |
| DICKER DATA LTD |
| SWISS WATER DECAFFCOFFEE |
DICKER DATA and SWISS WATER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and SWISS WATER
The main advantage of trading using opposite DICKER DATA and SWISS WATER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, SWISS WATER 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 SWISS WATER will offset losses from the drop in SWISS WATER's long position.| DICKER DATA vs. PennantPark Investment | DICKER DATA vs. New Residential Investment | DICKER DATA vs. Cogent Communications Holdings | DICKER DATA vs. Spirent Communications plc |
| SWISS WATER vs. MOVIE GAMES SA | SWISS WATER vs. Mitsui Chemicals | SWISS WATER vs. QINGCI GAMES INC | SWISS WATER vs. OURGAME INTHOLDL 00005 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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