Correlation Between DICKER DATA and Seven I
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and Seven I 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 Seven I 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 Seven i Holdings, you can compare the effects of market volatilities on DICKER DATA and Seven I 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 Seven I. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and Seven I.
Diversification Opportunities for DICKER DATA and Seven I
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and Seven is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and Seven i Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven i Holdings 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 Seven I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven i Holdings has no effect on the direction of DICKER DATA i.e., DICKER DATA and Seven I go up and down completely randomly.
Pair Corralation between DICKER DATA and Seven I
Assuming the 90 days horizon DICKER DATA is expected to generate 7.41 times less return on investment than Seven I. In addition to that, DICKER DATA is 1.1 times more volatile than Seven i Holdings. It trades about 0.0 of its total potential returns per unit of risk. Seven i Holdings is currently generating about 0.03 per unit of volatility. If you would invest 1,295 in Seven i Holdings on September 5, 2024 and sell it today you would earn a total of 343.00 from holding Seven i Holdings or generate 26.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
DICKER DATA LTD vs. Seven i Holdings
Performance |
| Timeline |
| DICKER DATA LTD |
| Seven i Holdings |
DICKER DATA and Seven I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and Seven I
The main advantage of trading using opposite DICKER DATA and Seven I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, Seven I 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 Seven I will offset losses from the drop in Seven I's long position.| DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. INNELEC MULTIMMINHEO153 |
| Seven I vs. Neinor Homes SA | Seven I vs. HomeToGo SE | Seven I vs. LGI Homes | Seven I vs. INVITATION HOMES DL |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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