Correlation Between DICKER DATA and Mercedes-Benz Group
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and Mercedes-Benz Group 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 Mercedes-Benz Group 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 Mercedes Benz Group AG, you can compare the effects of market volatilities on DICKER DATA and Mercedes-Benz Group 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 Mercedes-Benz Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and Mercedes-Benz Group.
Diversification Opportunities for DICKER DATA and Mercedes-Benz Group
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DICKER and Mercedes-Benz is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and Mercedes Benz Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercedes Benz Group 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 Mercedes-Benz Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercedes Benz Group has no effect on the direction of DICKER DATA i.e., DICKER DATA and Mercedes-Benz Group go up and down completely randomly.
Pair Corralation between DICKER DATA and Mercedes-Benz Group
Assuming the 90 days horizon DICKER DATA LTD is expected to generate 1.15 times more return on investment than Mercedes-Benz Group. However, DICKER DATA is 1.15 times more volatile than Mercedes Benz Group AG. It trades about -0.04 of its potential returns per unit of risk. Mercedes Benz Group AG is currently generating about -0.12 per unit of risk. If you would invest 539.00 in DICKER DATA LTD on September 3, 2024 and sell it today you would lose (29.00) from holding DICKER DATA LTD or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKER DATA LTD vs. Mercedes Benz Group AG
Performance |
| Timeline |
| DICKER DATA LTD |
| Mercedes Benz Group |
DICKER DATA and Mercedes-Benz Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and Mercedes-Benz Group
The main advantage of trading using opposite DICKER DATA and Mercedes-Benz Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, Mercedes-Benz Group 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 Mercedes-Benz Group will offset losses from the drop in Mercedes-Benz Group's long position.| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. INNELEC MULTIMMINHEO153 |
| Mercedes-Benz Group vs. Salesforce | Mercedes-Benz Group vs. Auto Trader Group | Mercedes-Benz Group vs. OAKTRSPECLENDNEW | Mercedes-Benz Group vs. National Retail Properties |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |