Correlation Between DICKER DATA and HK Electric
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and HK Electric 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 HK Electric 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 HK Electric Investments, you can compare the effects of market volatilities on DICKER DATA and HK Electric 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 HK Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and HK Electric.
Diversification Opportunities for DICKER DATA and HK Electric
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and HKT is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and HK Electric Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Electric Investments 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 HK Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Electric Investments has no effect on the direction of DICKER DATA i.e., DICKER DATA and HK Electric go up and down completely randomly.
Pair Corralation between DICKER DATA and HK Electric
Assuming the 90 days horizon DICKER DATA LTD is expected to under-perform the HK Electric. In addition to that, DICKER DATA is 3.24 times more volatile than HK Electric Investments. It trades about -0.02 of its total potential returns per unit of risk. HK Electric Investments is currently generating about 0.0 per unit of volatility. If you would invest 63.00 in HK Electric Investments on September 12, 2024 and sell it today you would earn a total of 0.00 from holding HK Electric Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKER DATA LTD vs. HK Electric Investments
Performance |
| Timeline |
| DICKER DATA LTD |
| HK Electric Investments |
DICKER DATA and HK Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and HK Electric
The main advantage of trading using opposite DICKER DATA and HK Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, HK Electric 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 HK Electric will offset losses from the drop in HK Electric's long position.| DICKER DATA vs. HK Electric Investments | DICKER DATA vs. Perma Fix Environmental Services | DICKER DATA vs. Virtus Investment Partners | DICKER DATA vs. COSMOSTEEL HLDGS |
| HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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