Correlation Between Bentre Aquaproduct and DIC Holdings
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct 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 Bentre Aquaproduct and DIC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentre Aquaproduct Import and DIC Holdings Construction, you can compare the effects of market volatilities on Bentre Aquaproduct 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 Bentre Aquaproduct with a short position of DIC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and DIC Holdings.
Diversification Opportunities for Bentre Aquaproduct and DIC Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentre and DIC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import 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 Bentre Aquaproduct 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 Bentre Aquaproduct Import 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 Bentre Aquaproduct i.e., Bentre Aquaproduct and DIC Holdings go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and DIC Holdings
Assuming the 90 days trading horizon Bentre Aquaproduct is expected to generate 29.53 times less return on investment than DIC Holdings. But when comparing it to its historical volatility, Bentre Aquaproduct Import is 5.24 times less risky than DIC Holdings. It trades about 0.06 of its potential returns per unit of risk. 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 | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. DIC Holdings Construction
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| DIC Holdings Construction |
Bentre Aquaproduct and DIC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and DIC Holdings
The main advantage of trading using opposite Bentre Aquaproduct and DIC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct 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.| Bentre Aquaproduct vs. FIT INVEST JSC | Bentre Aquaproduct vs. Damsan JSC | Bentre Aquaproduct vs. An Phat Plastic | Bentre Aquaproduct vs. APG Securities Joint |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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