Correlation Between 2S Metal and Dohome Public
Can any of the company-specific risk be diversified away by investing in both 2S Metal and Dohome Public 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 2S Metal and Dohome Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2S Metal Public and Dohome Public, you can compare the effects of market volatilities on 2S Metal and Dohome Public 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 2S Metal with a short position of Dohome Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2S Metal and Dohome Public.
Diversification Opportunities for 2S Metal and Dohome Public
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 2S Metal and Dohome is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding 2S Metal Public and Dohome Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dohome Public and 2S Metal 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 2S Metal Public are associated (or correlated) with Dohome Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dohome Public has no effect on the direction of 2S Metal i.e., 2S Metal and Dohome Public go up and down completely randomly.
Pair Corralation between 2S Metal and Dohome Public
Assuming the 90 days horizon 2S Metal Public is expected to generate 0.47 times more return on investment than Dohome Public. However, 2S Metal Public is 2.14 times less risky than Dohome Public. It trades about 0.02 of its potential returns per unit of risk. Dohome Public is currently generating about -0.02 per unit of risk. If you would invest 258.00 in 2S Metal Public on September 19, 2024 and sell it today you would earn a total of 16.00 from holding 2S Metal Public or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
2S Metal Public vs. Dohome Public
Performance |
| Timeline |
| 2S Metal Public |
| Dohome Public |
2S Metal and Dohome Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2S Metal and Dohome Public
The main advantage of trading using opposite 2S Metal and Dohome Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2S Metal position performs unexpectedly, Dohome Public 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 Dohome Public will offset losses from the drop in Dohome Public's long position.| 2S Metal vs. Tata Steel Public | 2S Metal vs. G J Steel | 2S Metal vs. POSCO Thainox Public | 2S Metal vs. TMT Steel Public |
| Dohome Public vs. Com7 PCL | Dohome Public vs. Central Retail | Dohome Public vs. Siam Global House | Dohome Public vs. Home Product Center |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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