Correlation Between DIC Holdings and Kien Giang
Can any of the company-specific risk be diversified away by investing in both DIC Holdings and Kien Giang 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 DIC Holdings and Kien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DIC Holdings Construction and Kien Giang Construction, you can compare the effects of market volatilities on DIC Holdings and Kien Giang 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 DIC Holdings with a short position of Kien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIC Holdings and Kien Giang.
Diversification Opportunities for DIC Holdings and Kien Giang
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DIC and Kien is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding DIC Holdings Construction and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction and DIC Holdings 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 DIC Holdings Construction are associated (or correlated) with Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of DIC Holdings i.e., DIC Holdings and Kien Giang go up and down completely randomly.
Pair Corralation between DIC Holdings and Kien Giang
Assuming the 90 days trading horizon DIC Holdings Construction is expected to generate 2.51 times more return on investment than Kien Giang. However, DIC Holdings is 2.51 times more volatile than Kien Giang Construction. It trades about 0.16 of its potential returns per unit of risk. Kien Giang Construction is currently generating about -0.13 per unit of risk. If you would invest 1,255,000 in DIC Holdings Construction on September 13, 2024 and sell it today you would earn a total of 160,000 from holding DIC Holdings Construction or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DIC Holdings Construction vs. Kien Giang Construction
Performance |
| Timeline |
| DIC Holdings Construction |
| Kien Giang Construction |
DIC Holdings and Kien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIC Holdings and Kien Giang
The main advantage of trading using opposite DIC Holdings and Kien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIC Holdings position performs unexpectedly, Kien Giang 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 Kien Giang will offset losses from the drop in Kien Giang's long position.| DIC Holdings vs. Vietnam Technological And | DIC Holdings vs. Fecon Mining JSC | DIC Holdings vs. Petrovietnam Technical Services | DIC Holdings vs. Global Electrical Technology |
| Kien Giang vs. SCG Construction JSC | Kien Giang vs. Binh Duong Construction | Kien Giang vs. POST TELECOMMU | Kien Giang vs. Elcom Technology Communications |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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