Correlation Between DICKER DATA and Wayside Technology
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and Wayside Technology 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 Wayside Technology 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 Wayside Technology Group, you can compare the effects of market volatilities on DICKER DATA and Wayside Technology 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 Wayside Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and Wayside Technology.
Diversification Opportunities for DICKER DATA and Wayside Technology
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and Wayside is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and Wayside Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayside Technology 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 Wayside Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayside Technology has no effect on the direction of DICKER DATA i.e., DICKER DATA and Wayside Technology go up and down completely randomly.
Pair Corralation between DICKER DATA and Wayside Technology
Assuming the 90 days horizon DICKER DATA LTD is expected to under-perform the Wayside Technology. But the stock apears to be less risky and, when comparing its historical volatility, DICKER DATA LTD is 1.33 times less risky than Wayside Technology. The stock trades about -0.02 of its potential returns per unit of risk. The Wayside Technology Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,261 in Wayside Technology Group on August 24, 2024 and sell it today you would earn a total of 8,539 from holding Wayside Technology Group or generate 200.4% 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. Wayside Technology Group
Performance |
| Timeline |
| DICKER DATA LTD |
| Wayside Technology |
DICKER DATA and Wayside Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and Wayside Technology
The main advantage of trading using opposite DICKER DATA and Wayside Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, Wayside Technology 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 Wayside Technology will offset losses from the drop in Wayside Technology's long position.The idea behind DICKER DATA LTD and Wayside Technology Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Wayside Technology vs. GREENX METALS LTD | Wayside Technology vs. LION ONE METALS | Wayside Technology vs. FUYO GENERAL LEASE | Wayside Technology vs. CarsalesCom |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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