Correlation Between DIC Holdings and Phat Dat
Can any of the company-specific risk be diversified away by investing in both DIC Holdings and Phat Dat 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 Phat Dat 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 Phat Dat Real, you can compare the effects of market volatilities on DIC Holdings and Phat Dat 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 Phat Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIC Holdings and Phat Dat.
Diversification Opportunities for DIC Holdings and Phat Dat
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between DIC and Phat is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding DIC Holdings Construction and Phat Dat Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phat Dat Real 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 Phat Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phat Dat Real has no effect on the direction of DIC Holdings i.e., DIC Holdings and Phat Dat go up and down completely randomly.
Pair Corralation between DIC Holdings and Phat Dat
Assuming the 90 days trading horizon DIC Holdings Construction is expected to generate 1.21 times more return on investment than Phat Dat. However, DIC Holdings is 1.21 times more volatile than Phat Dat Real. It trades about 0.17 of its potential returns per unit of risk. Phat Dat Real is currently generating about 0.04 per unit of risk. If you would invest 1,080,000 in DIC Holdings Construction on September 12, 2024 and sell it today you would earn a total of 335,000 from holding DIC Holdings Construction or generate 31.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
DIC Holdings Construction vs. Phat Dat Real
Performance |
| Timeline |
| DIC Holdings Construction |
| Phat Dat Real |
DIC Holdings and Phat Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIC Holdings and Phat Dat
The main advantage of trading using opposite DIC Holdings and Phat Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIC Holdings position performs unexpectedly, Phat Dat 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 Phat Dat will offset losses from the drop in Phat Dat'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 |
| Phat Dat vs. FIT INVEST JSC | Phat Dat vs. Damsan JSC | Phat Dat vs. An Phat Plastic | Phat Dat vs. Alphanam ME |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |