Correlation Between Dicker Data and Autosports
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Autosports 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 Autosports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Autosports Group, you can compare the effects of market volatilities on Dicker Data and Autosports 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 Autosports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Autosports.
Diversification Opportunities for Dicker Data and Autosports
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dicker and Autosports is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Autosports Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autosports Group 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 Autosports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autosports Group has no effect on the direction of Dicker Data i.e., Dicker Data and Autosports go up and down completely randomly.
Pair Corralation between Dicker Data and Autosports
Assuming the 90 days trading horizon Dicker Data is expected to generate 1.01 times more return on investment than Autosports. However, Dicker Data is 1.01 times more volatile than Autosports Group. It trades about 0.0 of its potential returns per unit of risk. Autosports Group is currently generating about -0.03 per unit of risk. If you would invest 933.00 in Dicker Data on August 29, 2024 and sell it today you would lose (73.00) from holding Dicker Data or give up 7.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. Autosports Group
Performance |
| Timeline |
| Dicker Data |
| Autosports Group |
Dicker Data and Autosports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Autosports
The main advantage of trading using opposite Dicker Data and Autosports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Autosports 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 Autosports will offset losses from the drop in Autosports' long position.| Dicker Data vs. PVW Resources | Dicker Data vs. Woolworths | Dicker Data vs. Wesfarmers | Dicker Data vs. Coles Group |
| Autosports vs. Summit Resources Limited | Autosports vs. Champion Iron | Autosports vs. Ridley | Autosports vs. Peel Mining |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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