Correlation Between Dicker Data and Regis Healthcare
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Regis Healthcare 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 Regis Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Regis Healthcare, you can compare the effects of market volatilities on Dicker Data and Regis Healthcare 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 Regis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Regis Healthcare.
Diversification Opportunities for Dicker Data and Regis Healthcare
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dicker and Regis is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Regis Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Healthcare 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 Regis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Healthcare has no effect on the direction of Dicker Data i.e., Dicker Data and Regis Healthcare go up and down completely randomly.
Pair Corralation between Dicker Data and Regis Healthcare
Assuming the 90 days trading horizon Dicker Data is expected to generate 2762.0 times less return on investment than Regis Healthcare. But when comparing it to its historical volatility, Dicker Data is 1.12 times less risky than Regis Healthcare. It trades about 0.0 of its potential returns per unit of risk. Regis Healthcare is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Regis Healthcare on August 29, 2024 and sell it today you would earn a total of 469.00 from holding Regis Healthcare or generate 250.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. Regis Healthcare
Performance |
| Timeline |
| Dicker Data |
| Regis Healthcare |
Dicker Data and Regis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Regis Healthcare
The main advantage of trading using opposite Dicker Data and Regis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Regis Healthcare 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 Regis Healthcare will offset losses from the drop in Regis Healthcare's long position.| Dicker Data vs. PVW Resources | Dicker Data vs. Woolworths | Dicker Data vs. Wesfarmers | Dicker Data vs. Coles Group |
| Regis Healthcare vs. Westpac Banking | Regis Healthcare vs. Champion Iron | Regis Healthcare vs. Ridley | Regis Healthcare vs. Peel Mining |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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