Correlation Between DIC Holdings and South Basic
Can any of the company-specific risk be diversified away by investing in both DIC Holdings and South Basic 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 South Basic 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 South Basic Chemicals, you can compare the effects of market volatilities on DIC Holdings and South Basic 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 South Basic. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIC Holdings and South Basic.
Diversification Opportunities for DIC Holdings and South Basic
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between DIC and South is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding DIC Holdings Construction and South Basic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Basic Chemicals 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 South Basic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Basic Chemicals has no effect on the direction of DIC Holdings i.e., DIC Holdings and South Basic go up and down completely randomly.
Pair Corralation between DIC Holdings and South Basic
Assuming the 90 days trading horizon DIC Holdings Construction is expected to generate 1.24 times more return on investment than South Basic. However, DIC Holdings is 1.24 times more volatile than South Basic Chemicals. It trades about 0.37 of its potential returns per unit of risk. South Basic Chemicals is currently generating about 0.13 per unit of risk. If you would invest 1,205,000 in DIC Holdings Construction on September 4, 2024 and sell it today you would earn a total of 325,000 from holding DIC Holdings Construction or generate 26.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DIC Holdings Construction vs. South Basic Chemicals
Performance |
| Timeline |
| DIC Holdings Construction |
| South Basic Chemicals |
DIC Holdings and South Basic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIC Holdings and South Basic
The main advantage of trading using opposite DIC Holdings and South Basic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIC Holdings position performs unexpectedly, South Basic 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 South Basic will offset losses from the drop in South Basic'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 |
| South Basic vs. Tin Nghia Industrial | South Basic vs. Vietnam Petroleum Transport | South Basic vs. DIC Holdings Construction | South Basic vs. Transport and Industry |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |