Correlation Between Evolution Mining and Dicker Data
Can any of the company-specific risk be diversified away by investing in both Evolution Mining and Dicker Data 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 Evolution Mining and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Mining and Dicker Data, you can compare the effects of market volatilities on Evolution Mining and Dicker Data 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 Evolution Mining with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and Dicker Data.
Diversification Opportunities for Evolution Mining and Dicker Data
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evolution and Dicker is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Evolution Mining 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 Evolution Mining are associated (or correlated) with Dicker Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dicker Data has no effect on the direction of Evolution Mining i.e., Evolution Mining and Dicker Data go up and down completely randomly.
Pair Corralation between Evolution Mining and Dicker Data
Assuming the 90 days trading horizon Evolution Mining is expected to generate 1.28 times more return on investment than Dicker Data. However, Evolution Mining is 1.28 times more volatile than Dicker Data. It trades about 0.05 of its potential returns per unit of risk. Dicker Data is currently generating about -0.01 per unit of risk. If you would invest 315.00 in Evolution Mining on October 13, 2024 and sell it today you would earn a total of 203.00 from holding Evolution Mining or generate 64.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Mining vs. Dicker Data
Performance |
| Timeline |
| Evolution Mining |
| Dicker Data |
Evolution Mining and Dicker Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Mining and Dicker Data
The main advantage of trading using opposite Evolution Mining and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining position performs unexpectedly, Dicker Data 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 Dicker Data will offset losses from the drop in Dicker Data's long position.| Evolution Mining vs. Sports Entertainment Group | Evolution Mining vs. WiseTech Global Limited | Evolution Mining vs. Hansen Technologies | Evolution Mining vs. Kneomedia |
| Dicker Data vs. Ora Banda Mining | Dicker Data vs. Evolution Mining | Dicker Data vs. Technology One | Dicker Data vs. Sayona 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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