Correlation Between Dicker Data and Dug Technology
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Dug Technology 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 Dug Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Dug Technology, you can compare the effects of market volatilities on Dicker Data and Dug Technology 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 Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Dug Technology.
Diversification Opportunities for Dicker Data and Dug Technology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dicker and Dug is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug Technology 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 Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of Dicker Data i.e., Dicker Data and Dug Technology go up and down completely randomly.
Pair Corralation between Dicker Data and Dug Technology
Assuming the 90 days trading horizon Dicker Data is expected to generate 0.66 times more return on investment than Dug Technology. However, Dicker Data is 1.52 times less risky than Dug Technology. It trades about -0.15 of its potential returns per unit of risk. Dug Technology is currently generating about -0.44 per unit of risk. If you would invest 998.00 in Dicker Data on August 29, 2024 and sell it today you would lose (160.00) from holding Dicker Data or give up 16.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. Dug Technology
Performance |
| Timeline |
| Dicker Data |
| Dug Technology |
Dicker Data and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Dug Technology
The main advantage of trading using opposite Dicker Data and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Dug Technology 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| Dicker Data vs. Australian Unity Office | Dicker Data vs. Phoslock Environmental Technologies | Dicker Data vs. Vulcan Steel | Dicker Data vs. Medical Developments International |
| Dug Technology vs. Vulcan Steel | Dug Technology vs. Queste Communications | Dug Technology vs. Aristocrat Leisure | Dug Technology vs. Viva Leisure |
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.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |