Correlation Between DICKER DATA and Brockhaus Capital
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and Brockhaus Capital 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 Brockhaus Capital 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 Brockhaus Capital Management, you can compare the effects of market volatilities on DICKER DATA and Brockhaus Capital 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 Brockhaus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and Brockhaus Capital.
Diversification Opportunities for DICKER DATA and Brockhaus Capital
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DICKER and Brockhaus is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and Brockhaus Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brockhaus Capital 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 Brockhaus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brockhaus Capital has no effect on the direction of DICKER DATA i.e., DICKER DATA and Brockhaus Capital go up and down completely randomly.
Pair Corralation between DICKER DATA and Brockhaus Capital
Assuming the 90 days horizon DICKER DATA LTD is expected to generate 1.06 times more return on investment than Brockhaus Capital. However, DICKER DATA is 1.06 times more volatile than Brockhaus Capital Management. It trades about 0.03 of its potential returns per unit of risk. Brockhaus Capital Management is currently generating about -0.23 per unit of risk. If you would invest 504.00 in DICKER DATA LTD on September 5, 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. Brockhaus Capital Management
Performance |
| Timeline |
| DICKER DATA LTD |
| Brockhaus Capital |
DICKER DATA and Brockhaus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and Brockhaus Capital
The main advantage of trading using opposite DICKER DATA and Brockhaus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, Brockhaus Capital 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 Brockhaus Capital will offset losses from the drop in Brockhaus Capital's long position.| DICKER DATA vs. HYDROFARM HLD GRP | DICKER DATA vs. Sterling Construction | DICKER DATA vs. Granite Construction | DICKER DATA vs. NISSIN FOODS HLDGS |
| Brockhaus Capital vs. JD SPORTS FASH | Brockhaus Capital vs. SPORTING | Brockhaus Capital vs. Hochschild Mining plc | Brockhaus Capital vs. Ming Le Sports |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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