Correlation Between Pinnacle Investment and Dicker Data

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

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

Diversification Opportunities for Pinnacle Investment and Dicker Data

0.28

Correlation Coefficient

Pinnacle Investment  Dicker Data

Modest diversification

The 3 months correlation between Pinnacle and Dicker is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pinnacle Investment Management and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Pinnacle Investment 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 Pinnacle Investment Management 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 Pinnacle Investment i.e., Pinnacle Investment and Dicker Data go up and down completely randomly.

Pair Corralation between Pinnacle Investment and Dicker Data

Assuming the 90 days trading horizon Pinnacle Investment Management is expected to under-perform the Dicker Data. In addition to that, Pinnacle Investment is 1.36 times more volatile than Dicker Data. It trades about -0.12 of its total potential returns per unit of risk. Dicker Data is currently generating about 0.02 per unit of volatility. If you would invest  832.00  in Dicker Data on December 31, 2024 and sell it today you would earn a total of  11.00  from holding Dicker Data or generate 1.32% return on investment over 90 days.

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

Pinnacle Investment Management  vs.  Dicker Data

Pinnacle Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pinnacle Investment Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Dicker Data

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dicker Data are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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 Pinnacle Investment and Dicker Data

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

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.