Correlation Between Dicker Data and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both Dicker Data and TTG Fintech 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 TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and TTG Fintech, you can compare the effects of market volatilities on Dicker Data and TTG Fintech 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 TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and TTG Fintech.
Diversification Opportunities for Dicker Data and TTG Fintech
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dicker and TTG is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech 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 TTG Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTG Fintech has no effect on the direction of Dicker Data i.e., Dicker Data and TTG Fintech go up and down completely randomly.
Pair Corralation between Dicker Data and TTG Fintech
If you would invest 857.00 in Dicker Data on August 30, 2024 and sell it today you would earn a total of 3.00 from holding Dicker Data or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. TTG Fintech
Performance |
| Timeline |
| Dicker Data |
| TTG Fintech |
Dicker Data and TTG Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and TTG Fintech
The main advantage of trading using opposite Dicker Data and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, TTG Fintech 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 TTG Fintech will offset losses from the drop in TTG Fintech's long position.| Dicker Data vs. PVW Resources | Dicker Data vs. Woolworths | Dicker Data vs. Wesfarmers | Dicker Data vs. Coles Group |
| TTG Fintech vs. Aneka Tambang Tbk | TTG Fintech vs. ANZ Group Holdings | TTG Fintech vs. Australia and New | TTG Fintech vs. Commonwealth Bank |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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