Correlation Between An Phat and DIC Holdings
Can any of the company-specific risk be diversified away by investing in both An Phat and DIC Holdings 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 An Phat and DIC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Plastic and DIC Holdings Construction, you can compare the effects of market volatilities on An Phat and DIC Holdings 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 An Phat with a short position of DIC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and DIC Holdings.
Diversification Opportunities for An Phat and DIC Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AAA and DIC is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and DIC Holdings Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIC Holdings Construction and An Phat 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 An Phat Plastic are associated (or correlated) with DIC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIC Holdings Construction has no effect on the direction of An Phat i.e., An Phat and DIC Holdings go up and down completely randomly.
Pair Corralation between An Phat and DIC Holdings
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the DIC Holdings. But the stock apears to be less risky and, when comparing its historical volatility, An Phat Plastic is 1.93 times less risky than DIC Holdings. The stock trades about -0.1 of its potential returns per unit of risk. The DIC Holdings Construction is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,065,000 in DIC Holdings Construction on August 28, 2024 and sell it today you would earn a total of 300,000 from holding DIC Holdings Construction or generate 28.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. DIC Holdings Construction
Performance |
| Timeline |
| An Phat Plastic |
| DIC Holdings Construction |
An Phat and DIC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and DIC Holdings
The main advantage of trading using opposite An Phat and DIC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, DIC Holdings 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 DIC Holdings will offset losses from the drop in DIC Holdings' long position.| An Phat vs. Vu Dang Investment | An Phat vs. Thanh Dat Investment | An Phat vs. HVC Investment and | An Phat vs. Dinhvu Port Investment |
| DIC Holdings vs. FIT INVEST JSC | DIC Holdings vs. Damsan JSC | DIC Holdings vs. An Phat Plastic | DIC Holdings vs. APG Securities Joint |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |