Correlation Between Regal Funds and Dicker Data

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

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

Diversification Opportunities for Regal Funds and Dicker Data

0.2

Correlation Coefficient

Regal Funds  Dicker Data

Modest diversification

The 3 months correlation between Regal and Dicker is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data and Regal Funds 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 Regal Funds 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 Regal Funds i.e., Regal Funds and Dicker Data go up and down completely randomly.

Pair Corralation between Regal Funds and Dicker Data

Assuming the 90 days trading horizon Regal Funds Management is expected to under-perform the Dicker Data. In addition to that, Regal Funds is 2.07 times more volatile than Dicker Data. It trades about -0.06 of its total potential returns per unit of risk. Dicker Data is currently generating about 0.0 per unit of volatility. If you would invest  838.00  in Dicker Data on December 22, 2024 and sell it today you would lose (13.00) from holding Dicker Data or give up 1.55% of portfolio value over 90 days.

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

Regal Funds Management  vs.  Dicker Data

Regal Funds Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regal Funds 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 essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Dicker Data

Risk-Adjusted Performance

Weak

Over the last 90 days Dicker Data has generated negative risk-adjusted returns adding no value to investors with long positions. 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 Regal Funds and Dicker Data

The main advantage of trading using opposite Regal Funds and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regal Funds 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 Regal Funds 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.