Correlation Between DIC Holdings and Camimex Group
Can any of the company-specific risk be diversified away by investing in both DIC Holdings and Camimex Group 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 Camimex Group 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 Camimex Group JSC, you can compare the effects of market volatilities on DIC Holdings and Camimex Group 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 Camimex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIC Holdings and Camimex Group.
Diversification Opportunities for DIC Holdings and Camimex Group
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DIC and Camimex is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding DIC Holdings Construction and Camimex Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camimex Group JSC 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 Camimex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camimex Group JSC has no effect on the direction of DIC Holdings i.e., DIC Holdings and Camimex Group go up and down completely randomly.
Pair Corralation between DIC Holdings and Camimex Group
Assuming the 90 days trading horizon DIC Holdings Construction is expected to under-perform the Camimex Group. In addition to that, DIC Holdings is 2.29 times more volatile than Camimex Group JSC. It trades about -0.02 of its total potential returns per unit of risk. Camimex Group JSC is currently generating about -0.02 per unit of volatility. If you would invest 900,000 in Camimex Group JSC on September 4, 2024 and sell it today you would lose (113,000) from holding Camimex Group JSC or give up 12.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DIC Holdings Construction vs. Camimex Group JSC
Performance |
| Timeline |
| DIC Holdings Construction |
| Camimex Group JSC |
DIC Holdings and Camimex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIC Holdings and Camimex Group
The main advantage of trading using opposite DIC Holdings and Camimex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIC Holdings position performs unexpectedly, Camimex Group 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 Camimex Group will offset losses from the drop in Camimex Group's long position.| DIC Holdings vs. Tien Phong Plastic | DIC Holdings vs. Bao Ngoc Investment | DIC Holdings vs. An Phat Plastic | DIC Holdings vs. Din Capital Investment |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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