Correlation Between DICKER DATA and PC Connection
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and PC Connection 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 PC Connection 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 PC Connection, you can compare the effects of market volatilities on DICKER DATA and PC Connection 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 PC Connection. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and PC Connection.
Diversification Opportunities for DICKER DATA and PC Connection
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DICKER and PCC is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and PC Connection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PC Connection 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 PC Connection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PC Connection has no effect on the direction of DICKER DATA i.e., DICKER DATA and PC Connection go up and down completely randomly.
Pair Corralation between DICKER DATA and PC Connection
Assuming the 90 days horizon DICKER DATA is expected to generate 1.44 times less return on investment than PC Connection. In addition to that, DICKER DATA is 1.39 times more volatile than PC Connection. It trades about 0.03 of its total potential returns per unit of risk. PC Connection is currently generating about 0.07 per unit of volatility. If you would invest 4,763 in PC Connection on September 12, 2024 and sell it today you would earn a total of 1,987 from holding PC Connection or generate 41.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKER DATA LTD vs. PC Connection
Performance |
| Timeline |
| DICKER DATA LTD |
| PC Connection |
DICKER DATA and PC Connection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and PC Connection
The main advantage of trading using opposite DICKER DATA and PC Connection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, PC Connection 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 PC Connection will offset losses from the drop in PC Connection'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 |
| PC Connection vs. Arrow Electronics | PC Connection vs. DICKER DATA LTD | PC Connection vs. KAGA EL LTD | PC Connection vs. Wayside Technology Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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