Correlation Between DICKER DATA and American Airlines
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and American Airlines 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 American Airlines 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 American Airlines Group, you can compare the effects of market volatilities on DICKER DATA and American Airlines 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 American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and American Airlines.
Diversification Opportunities for DICKER DATA and American Airlines
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and American is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines 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 American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of DICKER DATA i.e., DICKER DATA and American Airlines go up and down completely randomly.
Pair Corralation between DICKER DATA and American Airlines
Assuming the 90 days horizon DICKER DATA LTD is expected to generate 1.02 times more return on investment than American Airlines. However, DICKER DATA is 1.02 times more volatile than American Airlines Group. It trades about 0.02 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.01 per unit of risk. If you would invest 468.00 in DICKER DATA LTD on September 4, 2024 and sell it today you would earn a total of 42.00 from holding DICKER DATA LTD or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
DICKER DATA LTD vs. American Airlines Group
Performance |
| Timeline |
| DICKER DATA LTD |
| American Airlines |
DICKER DATA and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and American Airlines
The main advantage of trading using opposite DICKER DATA and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, American Airlines 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 American Airlines will offset losses from the drop in American Airlines' long position.| DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. INNELEC MULTIMMINHEO153 |
| American Airlines vs. Delta Air Lines | American Airlines vs. AIR CHINA LTD | American Airlines vs. RYANAIR HLDGS ADR | American Airlines vs. Southwest Airlines Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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