Correlation Between Selective Insurance and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both Selective Insurance 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 Selective Insurance and DICKER DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selective Insurance Group and DICKER DATA LTD, you can compare the effects of market volatilities on Selective Insurance 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 Selective Insurance with a short position of DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selective Insurance and DICKER DATA.
Diversification Opportunities for Selective Insurance and DICKER DATA
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Selective and DICKER is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Selective Insurance Group 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 Selective Insurance 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 Selective Insurance 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 LTD has no effect on the direction of Selective Insurance i.e., Selective Insurance and DICKER DATA go up and down completely randomly.
Pair Corralation between Selective Insurance and DICKER DATA
Assuming the 90 days horizon Selective Insurance Group is expected to generate 0.73 times more return on investment than DICKER DATA. However, Selective Insurance Group is 1.38 times less risky than DICKER DATA. It trades about 0.03 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about -0.02 per unit of risk. If you would invest 8,840 in Selective Insurance Group on September 3, 2024 and sell it today you would earn a total of 460.00 from holding Selective Insurance Group or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selective Insurance Group vs. DICKER DATA LTD
Performance |
| Timeline |
| Selective Insurance |
| DICKER DATA LTD |
Selective Insurance and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selective Insurance and DICKER DATA
The main advantage of trading using opposite Selective Insurance and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selective Insurance 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.| Selective Insurance vs. The Progressive | Selective Insurance vs. The Allstate | Selective Insurance vs. PICC Property and | Selective Insurance vs. Fairfax Financial Holdings |
| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. INNELEC MULTIMMINHEO153 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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