Correlation Between DICKER DATA and US Foods
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and US Foods 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 US Foods 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 US Foods Holding, you can compare the effects of market volatilities on DICKER DATA and US Foods 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 US Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and US Foods.
Diversification Opportunities for DICKER DATA and US Foods
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and UFH is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and US Foods Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Foods Holding 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 US Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Foods Holding has no effect on the direction of DICKER DATA i.e., DICKER DATA and US Foods go up and down completely randomly.
Pair Corralation between DICKER DATA and US Foods
Assuming the 90 days horizon DICKER DATA is expected to generate 12.5 times less return on investment than US Foods. In addition to that, DICKER DATA is 1.55 times more volatile than US Foods Holding. It trades about 0.01 of its total potential returns per unit of risk. US Foods Holding is currently generating about 0.1 per unit of volatility. If you would invest 3,280 in US Foods Holding on September 2, 2024 and sell it today you would earn a total of 3,420 from holding US Foods Holding or generate 104.27% 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. US Foods Holding
Performance |
| Timeline |
| DICKER DATA LTD |
| US Foods Holding |
DICKER DATA and US Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and US Foods
The main advantage of trading using opposite DICKER DATA and US Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, US Foods 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 US Foods will offset losses from the drop in US Foods' long position.| DICKER DATA vs. Chongqing Machinery Electric | DICKER DATA vs. Australian Agricultural | DICKER DATA vs. ALGOMA STEEL GROUP | DICKER DATA vs. Caltagirone SpA |
| US Foods vs. PENN NATL GAMING | US Foods vs. HOCHSCHILD MINING | US Foods vs. CARSALESCOM | US Foods vs. Auto Trader 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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