Correlation Between Dicker Data and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Actinogen Medical 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 Actinogen Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Actinogen Medical, you can compare the effects of market volatilities on Dicker Data and Actinogen Medical 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 Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Actinogen Medical.
Diversification Opportunities for Dicker Data and Actinogen Medical
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dicker and Actinogen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical 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 Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Dicker Data i.e., Dicker Data and Actinogen Medical go up and down completely randomly.
Pair Corralation between Dicker Data and Actinogen Medical
Assuming the 90 days trading horizon Dicker Data is expected to under-perform the Actinogen Medical. But the stock apears to be less risky and, when comparing its historical volatility, Dicker Data is 2.81 times less risky than Actinogen Medical. The stock trades about -0.09 of its potential returns per unit of risk. The Actinogen Medical is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2.30 in Actinogen Medical on September 14, 2024 and sell it today you would earn a total of 0.50 from holding Actinogen Medical or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. Actinogen Medical
Performance |
| Timeline |
| Dicker Data |
| Actinogen Medical |
Dicker Data and Actinogen Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Actinogen Medical
The main advantage of trading using opposite Dicker Data and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.| Dicker Data vs. Neurotech International | Dicker Data vs. Autosports Group | Dicker Data vs. Genetic Technologies | Dicker Data vs. Aristocrat Leisure |
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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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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