Correlation Between Dicker Data and Greenvale Energy
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Greenvale Energy 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 Greenvale Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Greenvale Energy, you can compare the effects of market volatilities on Dicker Data and Greenvale Energy 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 Greenvale Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Greenvale Energy.
Diversification Opportunities for Dicker Data and Greenvale Energy
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dicker and Greenvale is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Greenvale Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenvale Energy 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 Greenvale Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenvale Energy has no effect on the direction of Dicker Data i.e., Dicker Data and Greenvale Energy go up and down completely randomly.
Pair Corralation between Dicker Data and Greenvale Energy
Assuming the 90 days trading horizon Dicker Data is expected to under-perform the Greenvale Energy. But the stock apears to be less risky and, when comparing its historical volatility, Dicker Data is 4.83 times less risky than Greenvale Energy. The stock trades about -0.08 of its potential returns per unit of risk. The Greenvale Energy is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2.80 in Greenvale Energy on August 29, 2024 and sell it today you would earn a total of 0.60 from holding Greenvale Energy or generate 21.43% 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. Greenvale Energy
Performance |
| Timeline |
| Dicker Data |
| Greenvale Energy |
Dicker Data and Greenvale Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Greenvale Energy
The main advantage of trading using opposite Dicker Data and Greenvale Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Greenvale Energy 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 Greenvale Energy will offset losses from the drop in Greenvale Energy'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 |
| Greenvale Energy vs. Westpac Banking | Greenvale Energy vs. ABACUS STORAGE KING | Greenvale Energy vs. Insurance Australia Group | Greenvale Energy vs. Origin Energy |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |