Correlation Between Construction and DIC Holdings
Can any of the company-specific risk be diversified away by investing in both Construction and DIC Holdings 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 Construction and DIC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Construction And Investment and DIC Holdings Construction, you can compare the effects of market volatilities on Construction and DIC Holdings 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 Construction with a short position of DIC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Construction and DIC Holdings.
Diversification Opportunities for Construction and DIC Holdings
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Construction and DIC is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Construction And Investment and DIC Holdings Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIC Holdings Construction and Construction 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 Construction And Investment are associated (or correlated) with DIC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIC Holdings Construction has no effect on the direction of Construction i.e., Construction and DIC Holdings go up and down completely randomly.
Pair Corralation between Construction and DIC Holdings
Assuming the 90 days trading horizon Construction is expected to generate 19.18 times less return on investment than DIC Holdings. But when comparing it to its historical volatility, Construction And Investment is 2.25 times less risky than DIC Holdings. It trades about 0.05 of its potential returns per unit of risk. DIC Holdings Construction is currently generating about 0.42 of returns per unit of risk over similar time horizon. 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 | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Construction And Investment vs. DIC Holdings Construction
Performance |
| Timeline |
| Construction And Inv |
| DIC Holdings Construction |
Construction and DIC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Construction and DIC Holdings
The main advantage of trading using opposite Construction and DIC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Construction position performs unexpectedly, DIC Holdings 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 DIC Holdings will offset losses from the drop in DIC Holdings' long position.| Construction vs. Mechanics Construction and | Construction vs. Saigon Viendong Technology | Construction vs. Techcom Vietnam REIT | Construction vs. Hung Hau Agricultural |
| DIC Holdings vs. FIT INVEST JSC | DIC Holdings vs. Damsan JSC | DIC Holdings vs. An Phat Plastic | DIC Holdings 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |