Correlation Between Nutanix and DICKER DATA

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

By analyzing existing cross correlation between Nutanix and DICKER DATA LTD, you can compare the effects of market volatilities on Nutanix 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 Nutanix with a short position of DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nutanix and DICKER DATA.

Diversification Opportunities for Nutanix and DICKER DATA

0.54

Correlation Coefficient

Nutanix  DICKER DATA

Very weak diversification

The 3 months correlation between Nutanix and DICKER is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nutanix and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD and Nutanix 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 Nutanix 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 LTD has no effect on the direction of Nutanix i.e., Nutanix and DICKER DATA go up and down completely randomly.

Pair Corralation between Nutanix and DICKER DATA

Assuming the 90 days horizon Nutanix is expected to generate 0.85 times more return on investment than DICKER DATA. However, Nutanix is 1.18 times less risky than DICKER DATA. It trades about 0.12 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about 0.04 per unit of risk. If you would invest  5,588  in Nutanix on April 23, 2025 and sell it today you would earn a total of  886.00  from holding Nutanix or generate 15.86% return on investment over 90 days.

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

Nutanix  vs.  DICKER DATA LTD

Nutanix

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nutanix are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Nutanix reported solid returns over the last few months and may actually be approaching a breakup point.

DICKER DATA LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DICKER DATA LTD are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, DICKER DATA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Nutanix and DICKER DATA

The main advantage of trading using opposite Nutanix and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nutanix 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 Nutanix and DICKER DATA LTD 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.