Correlation Between DICKER DATA and Ross Stores
Can any of the company-specific risk be diversified away by investing in both DICKER DATA and Ross Stores 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 Ross Stores 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 Ross Stores, you can compare the effects of market volatilities on DICKER DATA and Ross Stores 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 Ross Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and Ross Stores.
Diversification Opportunities for DICKER DATA and Ross Stores
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between DICKER and Ross is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and Ross Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ross Stores 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 Ross Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ross Stores has no effect on the direction of DICKER DATA i.e., DICKER DATA and Ross Stores go up and down completely randomly.
Pair Corralation between DICKER DATA and Ross Stores
Assuming the 90 days horizon DICKER DATA LTD is expected to generate 2.15 times more return on investment than Ross Stores. However, DICKER DATA is 2.15 times more volatile than Ross Stores. It trades about 0.0 of its potential returns per unit of risk. Ross Stores is currently generating about -0.24 per unit of risk. If you would invest 494.00 in DICKER DATA LTD on December 28, 2024 and sell it today you would lose (16.00) from holding DICKER DATA LTD or give up 3.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DICKER DATA LTD vs. Ross Stores
Performance |
Timeline |
DICKER DATA LTD |
Ross Stores |
DICKER DATA and Ross Stores Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DICKER DATA and Ross Stores
The main advantage of trading using opposite DICKER DATA and Ross Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, Ross Stores 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 Ross Stores will offset losses from the drop in Ross Stores' long position.DICKER DATA vs. Ribbon Communications | DICKER DATA vs. Verizon Communications | DICKER DATA vs. Zijin Mining Group | DICKER DATA vs. Mobilezone Holding AG |
Ross Stores vs. Nexstar Media Group | Ross Stores vs. Samsung Electronics Co | Ross Stores vs. Renesas Electronics | Ross Stores vs. PARKEN Sport Entertainment |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |