Correlation Between Regal Funds and Dicker Data
Can any of the company-specific risk be diversified away by investing in both Regal Funds 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 Regal Funds and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regal Funds Management and Dicker Data, you can compare the effects of market volatilities on Regal Funds 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 Regal Funds with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regal Funds and Dicker Data.
Diversification Opportunities for Regal Funds and Dicker Data
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regal and Dicker is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Regal Funds 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 Regal Funds Management 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 Regal Funds i.e., Regal Funds and Dicker Data go up and down completely randomly.
Pair Corralation between Regal Funds and Dicker Data
Assuming the 90 days trading horizon Regal Funds Management is expected to generate 1.25 times more return on investment than Dicker Data. However, Regal Funds is 1.25 times more volatile than Dicker Data. It trades about 0.04 of its potential returns per unit of risk. Dicker Data is currently generating about 0.02 per unit of risk. If you would invest 298.00 in Regal Funds Management on August 30, 2024 and sell it today you would earn a total of 105.00 from holding Regal Funds Management or generate 35.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regal Funds Management vs. Dicker Data
Performance |
| Timeline |
| Regal Funds Management |
| Dicker Data |
Regal Funds and Dicker Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regal Funds and Dicker Data
The main advantage of trading using opposite Regal Funds and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds 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.| Regal Funds vs. Champion Iron | Regal Funds vs. Ridley | Regal Funds vs. Peel Mining | Regal Funds vs. Australian Dairy Farms |
| Dicker Data vs. PVW Resources | Dicker Data vs. Woolworths | Dicker Data vs. Wesfarmers | Dicker Data vs. Coles Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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