Correlation Between Bluebet Holdings and Dicker Data

Can any of the company-specific risk be diversified away by investing in both Bluebet Holdings 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 Bluebet Holdings and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bluebet Holdings and Dicker Data, you can compare the effects of market volatilities on Bluebet Holdings 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 Bluebet Holdings with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluebet Holdings and Dicker Data.

Diversification Opportunities for Bluebet Holdings and Dicker Data

-0.45

Correlation Coefficient

Bluebet Holdings  Dicker Data

Very good diversification

The 3 months correlation between Bluebet and Dicker is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bluebet Holdings and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Bluebet Holdings 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 Bluebet Holdings 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 Bluebet Holdings i.e., Bluebet Holdings and Dicker Data go up and down completely randomly.

Pair Corralation between Bluebet Holdings and Dicker Data

Assuming the 90 days trading horizon Bluebet Holdings is expected to generate 2.79 times more return on investment than Dicker Data. However, Bluebet Holdings is 2.79 times more volatile than Dicker Data. It trades about 0.19 of its potential returns per unit of risk. Dicker Data is currently generating about 0.0 per unit of risk. If you would invest  24.00  in Bluebet Holdings on October 25, 2024 and sell it today you would earn a total of  12.00  from holding Bluebet Holdings or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Bluebet Holdings  vs.  Dicker Data

Bluebet Holdings

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bluebet Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bluebet Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Dicker Data

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Bluebet Holdings and Dicker Data

The main advantage of trading using opposite Bluebet Holdings and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluebet Holdings 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 Bluebet Holdings 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.