Correlation Between DICKER DATA and Dupont De

Can any of the company-specific risk be diversified away by investing in both DICKER DATA and Dupont De 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 DICKER DATA and Dupont De into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DICKER DATA LTD and Dupont De Nemours, you can compare the effects of market volatilities on DICKER DATA and Dupont De 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 DICKER DATA with a short position of Dupont De. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and Dupont De.

Diversification Opportunities for DICKER DATA and Dupont De

0.76

Correlation Coefficient

DICKER DATA  Dupont De

Poor diversification

The 3 months correlation between DICKER and Dupont is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and Dupont De Nemours in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dupont De Nemours and DICKER DATA 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 DICKER DATA LTD are associated (or correlated) with Dupont De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dupont De Nemours has no effect on the direction of DICKER DATA i.e., DICKER DATA and Dupont De go up and down completely randomly.

Pair Corralation between DICKER DATA and Dupont De

Assuming the 90 days horizon DICKER DATA LTD is expected to generate 1.88 times more return on investment than Dupont De. However, DICKER DATA is 1.88 times more volatile than Dupont De Nemours. It trades about 0.01 of its potential returns per unit of risk. Dupont De Nemours is currently generating about -0.03 per unit of risk. If you would invest  494.00  in DICKER DATA LTD on December 29, 2024 and sell it today you would earn a total of  0.00  from holding DICKER DATA LTD or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

DICKER DATA LTD  vs.  Dupont De Nemours

DICKER DATA LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DICKER DATA LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, DICKER DATA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Dupont De Nemours

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dupont De Nemours has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Dupont De is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with DICKER DATA and Dupont De

The main advantage of trading using opposite DICKER DATA and Dupont De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, Dupont De 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 Dupont De will offset losses from the drop in Dupont De's long position.

The idea behind DICKER DATA LTD and Dupont De Nemours 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.