Correlation Between Vietnam Technological and DIC Holdings
Can any of the company-specific risk be diversified away by investing in both Vietnam Technological 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 Vietnam Technological and DIC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam Technological And and DIC Holdings Construction, you can compare the effects of market volatilities on Vietnam Technological 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 Vietnam Technological with a short position of DIC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Technological and DIC Holdings.
Diversification Opportunities for Vietnam Technological and DIC Holdings
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vietnam and DIC is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Technological And 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 Vietnam Technological 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 Vietnam Technological And 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 Vietnam Technological i.e., Vietnam Technological and DIC Holdings go up and down completely randomly.
Pair Corralation between Vietnam Technological and DIC Holdings
Assuming the 90 days trading horizon Vietnam Technological is expected to generate 2.29 times less return on investment than DIC Holdings. But when comparing it to its historical volatility, Vietnam Technological And is 3.7 times less risky than DIC Holdings. It trades about 0.2 of its potential returns per unit of risk. DIC Holdings Construction is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,235,000 in DIC Holdings Construction on September 14, 2024 and sell it today you would earn a total of 120,000 from holding DIC Holdings Construction or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam Technological And vs. DIC Holdings Construction
Performance |
| Timeline |
| Vietnam Technological And |
| DIC Holdings Construction |
Vietnam Technological and DIC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Technological and DIC Holdings
The main advantage of trading using opposite Vietnam Technological and DIC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Technological 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.| Vietnam Technological vs. FIT INVEST JSC | Vietnam Technological vs. Damsan JSC | Vietnam Technological vs. An Phat Plastic | Vietnam Technological vs. Alphanam ME |
| DIC Holdings vs. FPT Digital Retail | DIC Holdings vs. IDJ FINANCIAL | DIC Holdings vs. Century Synthetic Fiber | DIC Holdings vs. PostTelecommunication Equipment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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