Correlation Between DIC Holdings and Vina2 Investment
Can any of the company-specific risk be diversified away by investing in both DIC Holdings and Vina2 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 Vina2 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 Vina2 Investment and, you can compare the effects of market volatilities on DIC Holdings and Vina2 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 Vina2 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIC Holdings and Vina2 Investment.
Diversification Opportunities for DIC Holdings and Vina2 Investment
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DIC and Vina2 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding DIC Holdings Construction and Vina2 Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina2 Investment 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 Vina2 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina2 Investment has no effect on the direction of DIC Holdings i.e., DIC Holdings and Vina2 Investment go up and down completely randomly.
Pair Corralation between DIC Holdings and Vina2 Investment
Assuming the 90 days trading horizon DIC Holdings Construction is expected to generate 1.35 times more return on investment than Vina2 Investment. However, DIC Holdings is 1.35 times more volatile than Vina2 Investment and. It trades about 0.42 of its potential returns per unit of risk. Vina2 Investment and is currently generating about -0.11 per unit of risk. If you would invest 1,130,000 in DIC Holdings Construction on September 2, 2024 and sell it today you would earn a total of 385,000 from holding DIC Holdings Construction or generate 34.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DIC Holdings Construction vs. Vina2 Investment and
Performance |
| Timeline |
| DIC Holdings Construction |
| Vina2 Investment |
DIC Holdings and Vina2 Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIC Holdings and Vina2 Investment
The main advantage of trading using opposite DIC Holdings and Vina2 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIC Holdings position performs unexpectedly, Vina2 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 Vina2 Investment will offset losses from the drop in Vina2 Investment's long position.| DIC Holdings vs. FIT INVEST JSC | DIC Holdings vs. Damsan JSC | DIC Holdings vs. An Phat Plastic | DIC Holdings vs. Alphanam ME |
| Vina2 Investment vs. FIT INVEST JSC | Vina2 Investment vs. Damsan JSC | Vina2 Investment vs. An Phat Plastic | Vina2 Investment 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |