Correlation Between DICKER DATA and CeoTronics
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and CeoTronics 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 CeoTronics 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 CeoTronics AG, you can compare the effects of market volatilities on DICKER DATA and CeoTronics 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 CeoTronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and CeoTronics.
Diversification Opportunities for DICKER DATA and CeoTronics
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and CeoTronics is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and CeoTronics AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CeoTronics AG 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 CeoTronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CeoTronics AG has no effect on the direction of DICKER DATA i.e., DICKER DATA and CeoTronics go up and down completely randomly.
Pair Corralation between DICKER DATA and CeoTronics
Assuming the 90 days horizon DICKER DATA LTD is expected to under-perform the CeoTronics. But the stock apears to be less risky and, when comparing its historical volatility, DICKER DATA LTD is 1.54 times less risky than CeoTronics. The stock trades about -0.13 of its potential returns per unit of risk. The CeoTronics AG is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 555.00 in CeoTronics AG on September 13, 2024 and sell it today you would earn a total of 105.00 from holding CeoTronics AG or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKER DATA LTD vs. CeoTronics AG
Performance |
| Timeline |
| DICKER DATA LTD |
| CeoTronics AG |
DICKER DATA and CeoTronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and CeoTronics
The main advantage of trading using opposite DICKER DATA and CeoTronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, CeoTronics 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 CeoTronics will offset losses from the drop in CeoTronics' long position.| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group |
| CeoTronics vs. Cisco Systems | CeoTronics vs. Nokia | CeoTronics vs. Hewlett Packard Enterprise | CeoTronics vs. Superior Plus Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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