Correlation Between OOhMedia and Dicker Data
Can any of the company-specific risk be diversified away by investing in both OOhMedia 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 OOhMedia and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between oOhMedia and Dicker Data, you can compare the effects of market volatilities on OOhMedia 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 OOhMedia with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of OOhMedia and Dicker Data.
Diversification Opportunities for OOhMedia and Dicker Data
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OOhMedia and Dicker is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding oOhMedia and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and OOhMedia 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 oOhMedia 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 OOhMedia i.e., OOhMedia and Dicker Data go up and down completely randomly.
Pair Corralation between OOhMedia and Dicker Data
Assuming the 90 days trading horizon OOhMedia is expected to generate 5.02 times less return on investment than Dicker Data. But when comparing it to its historical volatility, oOhMedia is 1.04 times less risky than Dicker Data. It trades about 0.01 of its potential returns per unit of risk. Dicker Data is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 740.00 in Dicker Data on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Dicker Data or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
oOhMedia vs. Dicker Data
Performance |
| Timeline |
| oOhMedia |
| Dicker Data |
OOhMedia and Dicker Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OOhMedia and Dicker Data
The main advantage of trading using opposite OOhMedia and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OOhMedia 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.| OOhMedia vs. Aneka Tambang Tbk | OOhMedia vs. Macquarie Group | OOhMedia vs. Challenger | OOhMedia vs. BHP Group Limited |
| Dicker Data vs. Aneka Tambang Tbk | Dicker Data vs. BHP Group Limited | Dicker Data vs. Commonwealth Bank | Dicker Data vs. Commonwealth Bank of |
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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