Correlation Between Broadstone Net and DIH Holdings
Can any of the company-specific risk be diversified away by investing in both Broadstone Net and DIH 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 Broadstone Net and DIH Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadstone Net Lease and DIH Holdings US,, you can compare the effects of market volatilities on Broadstone Net and DIH 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 Broadstone Net with a short position of DIH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadstone Net and DIH Holdings.
Diversification Opportunities for Broadstone Net and DIH Holdings
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Broadstone and DIH is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Broadstone Net Lease and DIH Holdings US, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIH Holdings US, and Broadstone Net 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 Broadstone Net Lease are associated (or correlated) with DIH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIH Holdings US, has no effect on the direction of Broadstone Net i.e., Broadstone Net and DIH Holdings go up and down completely randomly.
Pair Corralation between Broadstone Net and DIH Holdings
Considering the 90-day investment horizon Broadstone Net Lease is expected to under-perform the DIH Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Broadstone Net Lease is 11.55 times less risky than DIH Holdings. The stock trades about -0.22 of its potential returns per unit of risk. The DIH Holdings US, is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 127.00 in DIH Holdings US, on September 12, 2024 and sell it today you would earn a total of 37.67 from holding DIH Holdings US, or generate 29.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadstone Net Lease vs. DIH Holdings US,
Performance |
| Timeline |
| Broadstone Net Lease |
| DIH Holdings US, |
Broadstone Net and DIH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadstone Net and DIH Holdings
The main advantage of trading using opposite Broadstone Net and DIH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadstone Net position performs unexpectedly, DIH 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 DIH Holdings will offset losses from the drop in DIH Holdings' long position.| Broadstone Net vs. Armada Hflr Pr | Broadstone Net vs. Brightspire Capital | Broadstone Net vs. Safehold | Broadstone Net vs. Essential Properties Realty |
| DIH Holdings vs. Kaiser Aluminum | DIH Holdings vs. Park Hotels Resorts | DIH Holdings vs. Century Aluminum | DIH Holdings vs. Summit Environmental |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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