Correlation Between DICKER DATA and Computershare

Can any of the company-specific risk be diversified away by investing in both DICKER DATA and Computershare 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 Computershare 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 Computershare Limited, you can compare the effects of market volatilities on DICKER DATA and Computershare 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 Computershare. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and Computershare.

Diversification Opportunities for DICKER DATA and Computershare

0.47

Correlation Coefficient

DICKER DATA  Computershare

Very weak diversification

The 3 months correlation between DICKER and Computershare is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and Computershare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computershare Limited 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 Computershare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computershare Limited has no effect on the direction of DICKER DATA i.e., DICKER DATA and Computershare go up and down completely randomly.

Pair Corralation between DICKER DATA and Computershare

Assuming the 90 days horizon DICKER DATA LTD is expected to generate 1.56 times more return on investment than Computershare. However, DICKER DATA is 1.56 times more volatile than Computershare Limited. It trades about 0.07 of its potential returns per unit of risk. Computershare Limited is currently generating about 0.1 per unit of risk. If you would invest  428.00  in DICKER DATA LTD on April 22, 2025 and sell it today you would earn a total of  42.00  from holding DICKER DATA LTD or generate 9.81% return on investment over 90 days.

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

DICKER DATA LTD  vs.  Computershare Limited

DICKER DATA LTD

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DICKER DATA LTD are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, DICKER DATA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Computershare Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Computershare Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Computershare may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with DICKER DATA and Computershare

The main advantage of trading using opposite DICKER DATA and Computershare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA position performs unexpectedly, Computershare 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 Computershare will offset losses from the drop in Computershare's long position.

The idea behind DICKER DATA LTD and Computershare Limited 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..