Correlation Between Dicker Data and Sky Metals
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Sky Metals 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 Sky Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Sky Metals, you can compare the effects of market volatilities on Dicker Data and Sky Metals 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 Sky Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Sky Metals.
Diversification Opportunities for Dicker Data and Sky Metals
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dicker and Sky is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Sky Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Metals 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 Sky Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Metals has no effect on the direction of Dicker Data i.e., Dicker Data and Sky Metals go up and down completely randomly.
Pair Corralation between Dicker Data and Sky Metals
Assuming the 90 days trading horizon Dicker Data is expected to under-perform the Sky Metals. But the stock apears to be less risky and, when comparing its historical volatility, Dicker Data is 2.4 times less risky than Sky Metals. The stock trades about -0.02 of its potential returns per unit of risk. The Sky Metals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3.90 in Sky Metals on September 1, 2024 and sell it today you would earn a total of 1.20 from holding Sky Metals or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. Sky Metals
Performance |
| Timeline |
| Dicker Data |
| Sky Metals |
Dicker Data and Sky Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Sky Metals
The main advantage of trading using opposite Dicker Data and Sky Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Sky Metals 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 Sky Metals will offset losses from the drop in Sky Metals' long position.| Dicker Data vs. K2 Asset Management | Dicker Data vs. Homeco Daily Needs | Dicker Data vs. Home Consortium | Dicker Data vs. Alternative Investment Trust |
| Sky Metals vs. Carnegie Clean Energy | Sky Metals vs. Nufarm Finance NZ | Sky Metals vs. Richmond Vanadium Technology | Sky Metals vs. Macquarie Technology Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |