Correlation Between DIC Holdings and Investment
Can any of the company-specific risk be diversified away by investing in both DIC Holdings and Investment 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 Investment 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 Investment And Construction, you can compare the effects of market volatilities on DIC Holdings and Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIC Holdings and Investment.
Diversification Opportunities for DIC Holdings and Investment
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DIC and Investment is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding DIC Holdings Construction and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of DIC Holdings i.e., DIC Holdings and Investment go up and down completely randomly.
Pair Corralation between DIC Holdings and Investment
Assuming the 90 days trading horizon DIC Holdings is expected to generate 1.88 times less return on investment than Investment. But when comparing it to its historical volatility, DIC Holdings Construction is 1.85 times less risky than Investment. It trades about 0.06 of its potential returns per unit of risk. Investment And Construction is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 360,000 in Investment And Construction on November 5, 2024 and sell it today you would earn a total of 570,000 from holding Investment And Construction or generate 158.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.33% |
| Values | Daily Returns |
DIC Holdings Construction vs. Investment And Construction
Performance |
| Timeline |
| DIC Holdings Construction |
| Investment And Const |
DIC Holdings and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIC Holdings and Investment
The main advantage of trading using opposite DIC Holdings and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIC Holdings position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| DIC Holdings vs. Vietnam Construction JSC | DIC Holdings vs. 1369 Construction JSC | DIC Holdings vs. Ducgiang Chemicals Detergent | DIC Holdings vs. Binh Duong Construction |
| Investment vs. Hai An Transport | Investment vs. PV2 Investment JSC | Investment vs. Hochiminh City Metal | Investment vs. Tien Giang Investment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |