Correlation Between Dycom Industries and Energys Group

Can any of the company-specific risk be diversified away by investing in both Dycom Industries and Energys Group 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 Energys Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dycom Industries and Energys Group Limited, you can compare the effects of market volatilities on Dycom Industries and Energys Group 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 Energys Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dycom Industries and Energys Group.

Diversification Opportunities for Dycom Industries and Energys Group

0.43

Correlation Coefficient

Dycom Industries  Energys Group

Very weak diversification

The 3 months correlation between Dycom and Energys is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dycom Industries and Energys Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energys Group Limited 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 Energys Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energys Group Limited has no effect on the direction of Dycom Industries i.e., Dycom Industries and Energys Group go up and down completely randomly.

Pair Corralation between Dycom Industries and Energys Group

Allowing for the 90-day total investment horizon Dycom Industries is expected to generate 9.44 times less return on investment than Energys Group. But when comparing it to its historical volatility, Dycom Industries is 4.81 times less risky than Energys Group. It trades about 0.15 of its potential returns per unit of risk. Energys Group Limited is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  177.00  in Energys Group Limited on July 3, 2025 and sell it today you would earn a total of  489.50  from holding Energys Group Limited or generate 276.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Dycom Industries  vs.  Energys Group Limited

Dycom Industries

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dycom Industries are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Dycom Industries showed solid returns over the last few months and may actually be approaching a breakup point.

Energys Group Limited

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Energys Group Limited are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Energys Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dycom Industries and Energys Group

The main advantage of trading using opposite Dycom Industries and Energys Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dycom Industries position performs unexpectedly, Energys Group 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 Energys Group will offset losses from the drop in Energys Group's long position.

The idea behind Dycom Industries and Energys Group Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.