Correlation Between DICKER DATA and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and Yuexiu Transport 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on DICKER DATA and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and Yuexiu Transport.
Diversification Opportunities for DICKER DATA and Yuexiu Transport
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and Yuexiu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of DICKER DATA i.e., DICKER DATA and Yuexiu Transport go up and down completely randomly.
Pair Corralation between DICKER DATA and Yuexiu Transport
Assuming the 90 days horizon DICKER DATA LTD is expected to under-perform the Yuexiu Transport. But the stock apears to be less risky and, when comparing its historical volatility, DICKER DATA LTD is 1.76 times less risky than Yuexiu Transport. The stock trades about 0.0 of its potential returns per unit of risk. The Yuexiu Transport Infrastructure is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Yuexiu Transport Infrastructure on October 28, 2024 and sell it today you would earn a total of 29.00 from holding Yuexiu Transport Infrastructure or generate 193.33% 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. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| DICKER DATA LTD |
| Yuexiu Transport Inf |
DICKER DATA and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and Yuexiu Transport
The main advantage of trading using opposite DICKER DATA and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport's long position.| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. Esprinet SpA | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. FORTEC Elektronik AG |
| Yuexiu Transport vs. Getlink SE | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Arcosa Inc | Yuexiu Transport 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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