Correlation Between Dicker Data and FSA
Can any of the company-specific risk be diversified away by investing in both Dicker Data and FSA 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 FSA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and FSA Group, you can compare the effects of market volatilities on Dicker Data and FSA 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 FSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and FSA.
Diversification Opportunities for Dicker Data and FSA
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dicker and FSA is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and FSA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSA 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 FSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSA Group has no effect on the direction of Dicker Data i.e., Dicker Data and FSA go up and down completely randomly.
Pair Corralation between Dicker Data and FSA
Assuming the 90 days trading horizon Dicker Data is expected to generate 1.32 times more return on investment than FSA. However, Dicker Data is 1.32 times more volatile than FSA Group. It trades about -0.07 of its potential returns per unit of risk. FSA Group is currently generating about -0.13 per unit of risk. If you would invest 855.00 in Dicker Data on August 31, 2024 and sell it today you would lose (22.00) from holding Dicker Data or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. FSA Group
Performance |
| Timeline |
| Dicker Data |
| FSA Group |
Dicker Data and FSA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and FSA
The main advantage of trading using opposite Dicker Data and FSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, FSA 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 FSA will offset losses from the drop in FSA's long position.| Dicker Data vs. Amani Gold | Dicker Data vs. A1 Investments Resources | Dicker Data vs. Coronado Global Resources | Dicker Data vs. Hutchison Telecommunications |
| FSA vs. Navigator Global Investments | FSA vs. A1 Investments Resources | FSA vs. BKI Investment | FSA vs. Alternative Investment Trust |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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