Correlation Between DICKER DATA and DAX Index
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By analyzing existing cross correlation between DICKER DATA LTD and DAX Index, you can compare the effects of market volatilities on DICKER DATA and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and DAX Index.
Diversification Opportunities for DICKER DATA and DAX Index
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and DAX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of DICKER DATA i.e., DICKER DATA and DAX Index go up and down completely randomly.
Pair Corralation between DICKER DATA and DAX Index
Assuming the 90 days horizon DICKER DATA LTD is expected to under-perform the DAX Index. In addition to that, DICKER DATA is 2.89 times more volatile than DAX Index. It trades about -0.22 of its total potential returns per unit of risk. DAX Index is currently generating about 0.18 per unit of volatility. If you would invest 1,940,520 in DAX Index on September 24, 2024 and sell it today you would earn a total of 47,955 from holding DAX Index or generate 2.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DICKER DATA LTD vs. DAX Index
Performance |
Timeline |
DICKER DATA and DAX Index Volatility Contrast
Predicted Return Density |
Returns |
DICKER DATA LTD
Pair trading matchups for DICKER DATA
DAX Index
Pair trading matchups for DAX Index
Pair Trading with DICKER DATA and DAX Index
The main advantage of trading using opposite DICKER DATA and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.DICKER DATA vs. Arrow Electronics | DICKER DATA vs. PC Connection | DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Esprinet SpA |
DAX Index vs. Seven West Media | DAX Index vs. TERADATA | DAX Index vs. DICKER DATA LTD | DAX Index vs. Datang International Power |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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