Correlation Between Dicker Data and OOhMedia
Can any of the company-specific risk be diversified away by investing in both Dicker Data and OOhMedia 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 OOhMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and oOhMedia, you can compare the effects of market volatilities on Dicker Data and OOhMedia 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 OOhMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and OOhMedia.
Diversification Opportunities for Dicker Data and OOhMedia
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dicker and OOhMedia is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia 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 OOhMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of oOhMedia has no effect on the direction of Dicker Data i.e., Dicker Data and OOhMedia go up and down completely randomly.
Pair Corralation between Dicker Data and OOhMedia
Assuming the 90 days trading horizon Dicker Data is expected to under-perform the OOhMedia. In addition to that, Dicker Data is 1.03 times more volatile than oOhMedia. It trades about -0.05 of its total potential returns per unit of risk. oOhMedia is currently generating about -0.05 per unit of volatility. If you would invest 134.00 in oOhMedia on September 13, 2024 and sell it today you would lose (16.00) from holding oOhMedia or give up 11.94% 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. oOhMedia
Performance |
| Timeline |
| Dicker Data |
| oOhMedia |
Dicker Data and OOhMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and OOhMedia
The main advantage of trading using opposite Dicker Data and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, OOhMedia 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 OOhMedia will offset losses from the drop in OOhMedia's long position.| Dicker Data vs. Energy Resources | Dicker Data vs. 88 Energy | Dicker Data vs. Amani Gold | Dicker Data vs. A1 Investments Resources |
| OOhMedia vs. Event Hospitality and | OOhMedia vs. BTC Health Limited | OOhMedia vs. Spirit Telecom | OOhMedia vs. G8 Education |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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