Correlation Between DIC Holdings and Pha Le
Can any of the company-specific risk be diversified away by investing in both DIC Holdings and Pha Le 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 Pha Le 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 Pha Le Plastics, you can compare the effects of market volatilities on DIC Holdings and Pha Le 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 Pha Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIC Holdings and Pha Le.
Diversification Opportunities for DIC Holdings and Pha Le
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DIC and Pha is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DIC Holdings Construction and Pha Le Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Le Plastics 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 Pha Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Le Plastics has no effect on the direction of DIC Holdings i.e., DIC Holdings and Pha Le go up and down completely randomly.
Pair Corralation between DIC Holdings and Pha Le
Assuming the 90 days trading horizon DIC Holdings Construction is expected to generate 1.54 times more return on investment than Pha Le. However, DIC Holdings is 1.54 times more volatile than Pha Le Plastics. It trades about 0.06 of its potential returns per unit of risk. Pha Le Plastics is currently generating about 0.02 per unit of risk. If you would invest 538,089 in DIC Holdings Construction on November 5, 2024 and sell it today you would earn a total of 541,911 from holding DIC Holdings Construction or generate 100.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
DIC Holdings Construction vs. Pha Le Plastics
Performance |
| Timeline |
| DIC Holdings Construction |
| Pha Le Plastics |
DIC Holdings and Pha Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIC Holdings and Pha Le
The main advantage of trading using opposite DIC Holdings and Pha Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIC Holdings position performs unexpectedly, Pha Le 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 Pha Le will offset losses from the drop in Pha Le'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 |
| Pha Le vs. Hai An Transport | Pha Le vs. Petrolimex Petrochemical JSC | Pha Le vs. Transport and Industry | Pha Le vs. Nam Kim Steel |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |