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
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DICKER and Ross is -0.4. 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 is expected to generate 1.24 times less return on investment than Ross Stores. In addition to that, DICKER DATA is 1.7 times more volatile than Ross Stores. It trades about 0.02 of its total potential returns per unit of risk. Ross Stores is currently generating about 0.05 per unit of volatility. If you would invest 10,159 in Ross Stores on December 5, 2024 and sell it today you would earn a total of 2,657 from holding Ross Stores or generate 26.15% 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. 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. MagnaChip Semiconductor Corp | DICKER DATA vs. TRADELINK ELECTRON | DICKER DATA vs. Taiwan Semiconductor Manufacturing | DICKER DATA vs. Canon Marketing Japan |
Ross Stores vs. UMC Electronics Co | Ross Stores vs. COMPUTER MODELLING | Ross Stores vs. UNITED INTERNET N | Ross Stores vs. INTERSHOP Communications Aktiengesellschaft |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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