Correlation Between FORTEC Elektronik and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both FORTEC Elektronik 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 FORTEC Elektronik and DICKER DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORTEC Elektronik AG and DICKER DATA LTD, you can compare the effects of market volatilities on FORTEC Elektronik 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 FORTEC Elektronik with a short position of DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORTEC Elektronik and DICKER DATA.
Diversification Opportunities for FORTEC Elektronik and DICKER DATA
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FORTEC and DICKER is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding FORTEC Elektronik AG and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD and FORTEC Elektronik 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 FORTEC Elektronik AG 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 LTD has no effect on the direction of FORTEC Elektronik i.e., FORTEC Elektronik and DICKER DATA go up and down completely randomly.
Pair Corralation between FORTEC Elektronik and DICKER DATA
Assuming the 90 days trading horizon FORTEC Elektronik AG is expected to under-perform the DICKER DATA. But the stock apears to be less risky and, when comparing its historical volatility, FORTEC Elektronik AG is 1.17 times less risky than DICKER DATA. The stock trades about -0.01 of its potential returns per unit of risk. The DICKER DATA LTD is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 473.00 in DICKER DATA LTD on November 6, 2024 and sell it today you would earn a total of 27.00 from holding DICKER DATA LTD or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.2% |
| Values | Daily Returns |
FORTEC Elektronik AG vs. DICKER DATA LTD
Performance |
| Timeline |
| FORTEC Elektronik |
| DICKER DATA LTD |
FORTEC Elektronik and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FORTEC Elektronik and DICKER DATA
The main advantage of trading using opposite FORTEC Elektronik and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORTEC Elektronik 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.| FORTEC Elektronik vs. STRAYER EDUCATION | FORTEC Elektronik vs. CENTURIA OFFICE REIT | FORTEC Elektronik vs. CHINA EDUCATION GROUP | FORTEC Elektronik vs. American Homes 4 |
| DICKER DATA vs. UPDATE SOFTWARE | DICKER DATA vs. Gol Intelligent Airlines | DICKER DATA vs. JAPAN AIRLINES | DICKER DATA vs. ATOSS SOFTWARE |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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