Correlation Between G8 Education and Dicker Data

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both G8 Education 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 G8 Education and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G8 Education and Dicker Data, you can compare the effects of market volatilities on G8 Education 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 G8 Education with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of G8 Education and Dicker Data.

Diversification Opportunities for G8 Education and Dicker Data

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between GEM and Dicker is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding G8 Education and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and G8 Education 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 G8 Education 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 G8 Education i.e., G8 Education and Dicker Data go up and down completely randomly.

Pair Corralation between G8 Education and Dicker Data

Assuming the 90 days trading horizon G8 Education is expected to generate 0.84 times more return on investment than Dicker Data. However, G8 Education is 1.19 times less risky than Dicker Data. It trades about 0.05 of its potential returns per unit of risk. Dicker Data is currently generating about -0.15 per unit of risk. If you would invest  135.00  in G8 Education on September 13, 2024 and sell it today you would earn a total of  2.00  from holding G8 Education or generate 1.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

G8 Education  vs.  Dicker Data

 Performance 
       Timeline  
G8 Education 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in G8 Education are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, G8 Education may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Dicker Data 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Dicker Data has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Dicker Data is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

G8 Education and Dicker Data Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with G8 Education and Dicker Data

The main advantage of trading using opposite G8 Education and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G8 Education 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.
The idea behind G8 Education and Dicker Data pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges