Correlation Between Dicker Data and National Australia
Can any of the company-specific risk be diversified away by investing in both Dicker Data and National Australia 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 National Australia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and National Australia Bank, you can compare the effects of market volatilities on Dicker Data and National Australia 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 National Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and National Australia.
Diversification Opportunities for Dicker Data and National Australia
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dicker and National is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and National Australia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Australia Bank 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 National Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Australia Bank has no effect on the direction of Dicker Data i.e., Dicker Data and National Australia go up and down completely randomly.
Pair Corralation between Dicker Data and National Australia
Assuming the 90 days trading horizon Dicker Data is expected to generate 9.19 times more return on investment than National Australia. However, Dicker Data is 9.19 times more volatile than National Australia Bank. It trades about 0.06 of its potential returns per unit of risk. National Australia Bank is currently generating about 0.18 per unit of risk. If you would invest 858.00 in Dicker Data on November 27, 2024 and sell it today you would earn a total of 16.00 from holding Dicker Data or generate 1.86% 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. National Australia Bank
Performance |
| Timeline |
| Dicker Data |
| National Australia Bank |
Dicker Data and National Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and National Australia
The main advantage of trading using opposite Dicker Data and National Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, National Australia 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 National Australia will offset losses from the drop in National Australia's long position.| Dicker Data vs. Djerriwarrh Investments | Dicker Data vs. Hudson Investment Group | Dicker Data vs. Stelar Metals | Dicker Data vs. FireFly Metals |
| National Australia vs. Bluescope Steel | National Australia vs. Bisalloy Steel Group | National Australia vs. Pearl Gull Iron | National Australia vs. Hutchison Telecommunications |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| 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 | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |