Correlation Between Skycity Entertainment and Dicker Data
Can any of the company-specific risk be diversified away by investing in both Skycity Entertainment 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 Skycity Entertainment and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skycity Entertainment Group and Dicker Data, you can compare the effects of market volatilities on Skycity Entertainment 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 Skycity Entertainment with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skycity Entertainment and Dicker Data.
Diversification Opportunities for Skycity Entertainment and Dicker Data
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skycity and Dicker is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Skycity Entertainment Group and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Skycity Entertainment 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 Skycity Entertainment Group 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 Skycity Entertainment i.e., Skycity Entertainment and Dicker Data go up and down completely randomly.
Pair Corralation between Skycity Entertainment and Dicker Data
Assuming the 90 days trading horizon Skycity Entertainment is expected to generate 2.58 times less return on investment than Dicker Data. In addition to that, Skycity Entertainment is 1.91 times more volatile than Dicker Data. It trades about 0.01 of its total potential returns per unit of risk. Dicker Data is currently generating about 0.05 per unit of volatility. If you would invest 842.00 in Dicker Data on October 25, 2024 and sell it today you would earn a total of 8.00 from holding Dicker Data or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skycity Entertainment Group vs. Dicker Data
Performance |
| Timeline |
| Skycity Entertainment |
| Dicker Data |
Skycity Entertainment and Dicker Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skycity Entertainment and Dicker Data
The main advantage of trading using opposite Skycity Entertainment and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skycity Entertainment 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.| Skycity Entertainment vs. Fisher Paykel Healthcare | Skycity Entertainment vs. Event Hospitality and | Skycity Entertainment vs. Oceania Healthcare | Skycity Entertainment vs. Nufarm Finance NZ |
| Dicker Data vs. Centuria Industrial Reit | Dicker Data vs. Bluescope Steel | Dicker Data vs. Champion Iron | Dicker Data vs. Aeris Environmental |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |