Correlation Between Dicker Data and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Perseus Mining 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 Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Perseus Mining, you can compare the effects of market volatilities on Dicker Data and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Perseus Mining.
Diversification Opportunities for Dicker Data and Perseus Mining
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dicker and Perseus is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Perseus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Dicker Data i.e., Dicker Data and Perseus Mining go up and down completely randomly.
Pair Corralation between Dicker Data and Perseus Mining
Assuming the 90 days trading horizon Dicker Data is expected to generate 0.59 times more return on investment than Perseus Mining. However, Dicker Data is 1.68 times less risky than Perseus Mining. It trades about -0.1 of its potential returns per unit of risk. Perseus Mining is currently generating about -0.17 per unit of risk. If you would invest 862.00 in Dicker Data on August 25, 2024 and sell it today you would lose (25.00) from holding Dicker Data or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dicker Data vs. Perseus Mining
Performance |
| Timeline |
| Dicker Data |
| Perseus Mining |
Dicker Data and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Perseus Mining
The main advantage of trading using opposite Dicker Data and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Dicker Data vs. Greenvale Energy | Dicker Data vs. Summit Resources Limited | Dicker Data vs. Ecofibre | Dicker Data vs. iShares Global Healthcare |
| Perseus Mining vs. Platinum Asia Investments | Perseus Mining vs. Collins Foods | Perseus Mining vs. Hudson Investment Group | Perseus Mining vs. Alternative Investment Trust |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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