Correlation Between Dycom Industries and Steel Partners
Can any of the company-specific risk be diversified away by investing in both Dycom Industries and Steel Partners 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 Dycom Industries and Steel Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dycom Industries and Steel Partners Holdings, you can compare the effects of market volatilities on Dycom Industries and Steel Partners 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 Dycom Industries with a short position of Steel Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dycom Industries and Steel Partners.
Diversification Opportunities for Dycom Industries and Steel Partners
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dycom and Steel is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dycom Industries and Steel Partners Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Partners Holdings and Dycom Industries 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 Dycom Industries are associated (or correlated) with Steel Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Partners Holdings has no effect on the direction of Dycom Industries i.e., Dycom Industries and Steel Partners go up and down completely randomly.
Pair Corralation between Dycom Industries and Steel Partners
Allowing for the 90-day total investment horizon Dycom Industries is expected to generate 0.66 times more return on investment than Steel Partners. However, Dycom Industries is 1.51 times less risky than Steel Partners. It trades about 0.24 of its potential returns per unit of risk. Steel Partners Holdings is currently generating about -0.06 per unit of risk. If you would invest 15,777 in Dycom Industries on March 26, 2025 and sell it today you would earn a total of 8,104 from holding Dycom Industries or generate 51.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 46.77% |
| Values | Daily Returns |
Dycom Industries vs. Steel Partners Holdings
Performance |
| Timeline |
| Dycom Industries |
| Steel Partners Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Dycom Industries and Steel Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dycom Industries and Steel Partners
The main advantage of trading using opposite Dycom Industries and Steel Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dycom Industries position performs unexpectedly, Steel Partners 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 Steel Partners will offset losses from the drop in Steel Partners' long position.| Dycom Industries vs. EMCOR Group | Dycom Industries vs. MYR Group | Dycom Industries vs. Topbuild Corp | Dycom Industries vs. Api Group Corp |
| Steel Partners vs. Compass Diversified | Steel Partners vs. Compass Diversified | Steel Partners vs. Compass Diversified | Steel Partners vs. Tejon Ranch Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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