Correlation Between DIC Holdings and Phuoc Hoa
Can any of the company-specific risk be diversified away by investing in both DIC Holdings and Phuoc Hoa 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 Phuoc Hoa 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 Phuoc Hoa Rubber, you can compare the effects of market volatilities on DIC Holdings and Phuoc Hoa 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 Phuoc Hoa. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIC Holdings and Phuoc Hoa.
Diversification Opportunities for DIC Holdings and Phuoc Hoa
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DIC and Phuoc is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding DIC Holdings Construction and Phuoc Hoa Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phuoc Hoa Rubber 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 Phuoc Hoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phuoc Hoa Rubber has no effect on the direction of DIC Holdings i.e., DIC Holdings and Phuoc Hoa go up and down completely randomly.
Pair Corralation between DIC Holdings and Phuoc Hoa
Assuming the 90 days trading horizon DIC Holdings is expected to generate 2.29 times less return on investment than Phuoc Hoa. In addition to that, DIC Holdings is 2.13 times more volatile than Phuoc Hoa Rubber. It trades about 0.01 of its total potential returns per unit of risk. Phuoc Hoa Rubber is currently generating about 0.05 per unit of volatility. If you would invest 4,099,098 in Phuoc Hoa Rubber on September 4, 2024 and sell it today you would earn a total of 1,590,902 from holding Phuoc Hoa Rubber or generate 38.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DIC Holdings Construction vs. Phuoc Hoa Rubber
Performance |
| Timeline |
| DIC Holdings Construction |
| Phuoc Hoa Rubber |
DIC Holdings and Phuoc Hoa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIC Holdings and Phuoc Hoa
The main advantage of trading using opposite DIC Holdings and Phuoc Hoa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIC Holdings position performs unexpectedly, Phuoc Hoa 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 Phuoc Hoa will offset losses from the drop in Phuoc Hoa'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 |
| Phuoc Hoa vs. FIT INVEST JSC | Phuoc Hoa vs. Damsan JSC | Phuoc Hoa vs. An Phat Plastic | Phuoc Hoa 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |