Correlation Between Dicker Data and Technology One
Can any of the company-specific risk be diversified away by investing in both Dicker Data and Technology One 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 Technology One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicker Data and Technology One, you can compare the effects of market volatilities on Dicker Data and Technology One 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 Technology One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicker Data and Technology One.
Diversification Opportunities for Dicker Data and Technology One
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dicker and Technology is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Dicker Data and Technology One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technology One 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 Technology One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technology One has no effect on the direction of Dicker Data i.e., Dicker Data and Technology One go up and down completely randomly.
Pair Corralation between Dicker Data and Technology One
Assuming the 90 days trading horizon Dicker Data is expected to generate 0.85 times more return on investment than Technology One. However, Dicker Data is 1.18 times less risky than Technology One. It trades about -0.02 of its potential returns per unit of risk. Technology One is currently generating about -0.15 per unit of risk. If you would invest 848.00 in Dicker Data on October 24, 2024 and sell it today you would lose (4.00) from holding Dicker Data or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicker Data vs. Technology One
Performance |
| Timeline |
| Dicker Data |
| Technology One |
Dicker Data and Technology One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicker Data and Technology One
The main advantage of trading using opposite Dicker Data and Technology One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicker Data position performs unexpectedly, Technology One 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 Technology One will offset losses from the drop in Technology One's long position.| Dicker Data vs. Falcon Metals | Dicker Data vs. Aussie Broadband | Dicker Data vs. Pure Foods Tasmania | Dicker Data vs. Beston Global Food |
| Technology One vs. Kip McGrath Education | Technology One vs. Mayfield Childcare | Technology One vs. Dicker Data | Technology One 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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