Correlation Between Platinum Asset and Dicker Data
Can any of the company-specific risk be diversified away by investing in both Platinum Asset 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 Platinum Asset and Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Asset Management and Dicker Data, you can compare the effects of market volatilities on Platinum Asset 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 Platinum Asset with a short position of Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asset and Dicker Data.
Diversification Opportunities for Platinum Asset and Dicker Data
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Platinum and Dicker is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asset Management and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Platinum Asset 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 Platinum Asset 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 Platinum Asset i.e., Platinum Asset and Dicker Data go up and down completely randomly.
Pair Corralation between Platinum Asset and Dicker Data
Assuming the 90 days trading horizon Platinum Asset Management is expected to under-perform the Dicker Data. In addition to that, Platinum Asset is 1.4 times more volatile than Dicker Data. It trades about -0.04 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 764.00 in Dicker Data on December 2, 2024 and sell it today you would earn a total of 77.00 from holding Dicker Data or generate 10.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Platinum Asset Management vs. Dicker Data
Performance |
Timeline |
Platinum Asset Management |
Dicker Data |
Platinum Asset and Dicker Data Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Platinum Asset and Dicker Data
The main advantage of trading using opposite Platinum Asset and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asset 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.Platinum Asset vs. Black Rock Mining | Platinum Asset vs. M3 Mining | Platinum Asset vs. MotorCycle Holdings | Platinum Asset vs. Healthco Healthcare and |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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