Correlation Between Dicker Data and Auswide Bank
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Auswide Bank 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 Auswide Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Auswide Bank, you can compare the effects of market volatilities on Dicker Data and Auswide Bank 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 Auswide Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Auswide Bank.
Diversification Opportunities for Dicker Data and Auswide Bank
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dicker and Auswide is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Auswide Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auswide Bank 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 are associated (or correlated) with Auswide Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auswide Bank has no effect on the direction of Dicker Data i.e., Dicker Data and Auswide Bank go up and down completely randomly.
Pair Corralation between Dicker Data and Auswide Bank
Assuming the 90 days trading horizon Dicker Data is expected to generate 1.55 times more return on investment than Auswide Bank. However, Dicker Data is 1.55 times more volatile than Auswide Bank. It trades about 0.0 of its potential returns per unit of risk. Auswide Bank is currently generating about -0.01 per unit of risk. If you would invest 932.00 in Dicker Data on September 3, 2024 and sell it today you would lose (81.00) from holding Dicker Data or give up 8.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. Auswide Bank
Performance |
| Timeline |
| Dicker Data |
| Auswide Bank |
Dicker Data and Auswide Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Auswide Bank
The main advantage of trading using opposite Dicker Data and Auswide Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Auswide Bank 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 Auswide Bank will offset losses from the drop in Auswide Bank's long position.| Dicker Data vs. Stelar Metals | Dicker Data vs. MetalsGrove Mining | Dicker Data vs. Perseus Mining | Dicker Data vs. Infomedia |
| Auswide Bank vs. Audio Pixels Holdings | Auswide Bank vs. Iodm | Auswide Bank vs. TTG Fintech | Auswide Bank vs. Mantle Minerals Limited |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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