Correlation Between Dicker Data and Hotel Property
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Hotel Property 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 Hotel Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Hotel Property Investments, you can compare the effects of market volatilities on Dicker Data and Hotel Property 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 Hotel Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Hotel Property.
Diversification Opportunities for Dicker Data and Hotel Property
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dicker and Hotel is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Hotel Property Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Property Inves 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 Hotel Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Property Inves has no effect on the direction of Dicker Data i.e., Dicker Data and Hotel Property go up and down completely randomly.
Pair Corralation between Dicker Data and Hotel Property
Assuming the 90 days trading horizon Dicker Data is expected to under-perform the Hotel Property. In addition to that, Dicker Data is 1.58 times more volatile than Hotel Property Investments. It trades about -0.03 of its total potential returns per unit of risk. Hotel Property Investments is currently generating about 0.09 per unit of volatility. If you would invest 294.00 in Hotel Property Investments on December 2, 2024 and sell it today you would earn a total of 81.00 from holding Hotel Property Investments or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. Hotel Property Investments
Performance |
| Timeline |
| Dicker Data |
| Hotel Property Inves |
Dicker Data and Hotel Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Hotel Property
The main advantage of trading using opposite Dicker Data and Hotel Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Hotel Property 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 Hotel Property will offset losses from the drop in Hotel Property's long position.| Dicker Data vs. Cleanaway Waste Management | Dicker Data vs. Clime Investment Management | Dicker Data vs. Homeco Daily Needs | Dicker Data vs. Platinum Asia Investments |
| Hotel Property vs. Macquarie Technology Group | Hotel Property vs. Technology One | Hotel Property vs. Stelar Metals | Hotel Property vs. Ainsworth Game Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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