Correlation Between DAEA TI and Vina Technology
Can any of the company-specific risk be diversified away by investing in both DAEA TI and Vina Technology 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 DAEA TI and Vina Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAEA TI Co and Vina Technology Co, you can compare the effects of market volatilities on DAEA TI and Vina Technology 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 DAEA TI with a short position of Vina Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAEA TI and Vina Technology.
Diversification Opportunities for DAEA TI and Vina Technology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAEA and Vina is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding DAEA TI Co and Vina Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina Technology and DAEA TI 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 DAEA TI Co are associated (or correlated) with Vina Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina Technology has no effect on the direction of DAEA TI i.e., DAEA TI and Vina Technology go up and down completely randomly.
Pair Corralation between DAEA TI and Vina Technology
Assuming the 90 days trading horizon DAEA TI Co is expected to generate 0.7 times more return on investment than Vina Technology. However, DAEA TI Co is 1.43 times less risky than Vina Technology. It trades about 0.12 of its potential returns per unit of risk. Vina Technology Co is currently generating about -0.08 per unit of risk. If you would invest 316,000 in DAEA TI Co on November 29, 2024 and sell it today you would earn a total of 14,500 from holding DAEA TI Co or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
DAEA TI Co vs. Vina Technology Co
Performance |
| Timeline |
| DAEA TI |
| Vina Technology |
DAEA TI and Vina Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAEA TI and Vina Technology
The main advantage of trading using opposite DAEA TI and Vina Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAEA TI position performs unexpectedly, Vina Technology 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 Vina Technology will offset losses from the drop in Vina Technology's long position.| DAEA TI vs. EO Technics Co | DAEA TI vs. EASY HOLDINGS Co | DAEA TI vs. Nepes | DAEA TI vs. JUSUNG ENGINEERING Co |
| Vina Technology vs. Korea Investment Holdings | Vina Technology vs. Hana Financial | Vina Technology vs. Samsung Life Insurance | Vina Technology vs. InfoBank |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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