Correlation Between Tri Viet and DIC Holdings
Can any of the company-specific risk be diversified away by investing in both Tri Viet 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 Tri Viet and DIC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tri Viet Management and DIC Holdings Construction, you can compare the effects of market volatilities on Tri Viet 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 Tri Viet with a short position of DIC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tri Viet and DIC Holdings.
Diversification Opportunities for Tri Viet and DIC Holdings
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tri and DIC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tri Viet Management 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 Tri Viet 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 Tri Viet Management 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 Tri Viet i.e., Tri Viet and DIC Holdings go up and down completely randomly.
Pair Corralation between Tri Viet and DIC Holdings
Assuming the 90 days trading horizon Tri Viet Management is expected to generate 0.88 times more return on investment than DIC Holdings. However, Tri Viet Management is 1.13 times less risky than DIC Holdings. It trades about -0.14 of its potential returns per unit of risk. DIC Holdings Construction is currently generating about -0.23 per unit of risk. If you would invest 1,000,000 in Tri Viet Management on November 5, 2024 and sell it today you would lose (40,000) from holding Tri Viet Management or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tri Viet Management vs. DIC Holdings Construction
Performance |
| Timeline |
| Tri Viet Management |
| DIC Holdings Construction |
Tri Viet and DIC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tri Viet and DIC Holdings
The main advantage of trading using opposite Tri Viet and DIC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tri Viet 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.| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet vs. APG Securities Joint |
| DIC Holdings vs. Vietnam Construction JSC | DIC Holdings vs. 1369 Construction JSC | DIC Holdings vs. Ducgiang Chemicals Detergent | DIC Holdings vs. Binh Duong Construction |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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