Correlation Between Daito Trust and SAMS INTERNAT
Can any of the company-specific risk be diversified away by investing in both Daito Trust and SAMS INTERNAT 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 Daito Trust and SAMS INTERNAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daito Trust Construction and SAMS INTERNAT R, you can compare the effects of market volatilities on Daito Trust and SAMS INTERNAT 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 Daito Trust with a short position of SAMS INTERNAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daito Trust and SAMS INTERNAT.
Diversification Opportunities for Daito Trust and SAMS INTERNAT
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Daito and SAMS is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Daito Trust Construction and SAMS INTERNAT R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMS INTERNAT R and Daito Trust 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 Daito Trust Construction are associated (or correlated) with SAMS INTERNAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMS INTERNAT R has no effect on the direction of Daito Trust i.e., Daito Trust and SAMS INTERNAT go up and down completely randomly.
Pair Corralation between Daito Trust and SAMS INTERNAT
Assuming the 90 days horizon Daito Trust is expected to generate 3.53 times less return on investment than SAMS INTERNAT. But when comparing it to its historical volatility, Daito Trust Construction is 2.09 times less risky than SAMS INTERNAT. It trades about 0.02 of its potential returns per unit of risk. SAMS INTERNAT R is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 173.00 in SAMS INTERNAT R on September 12, 2024 and sell it today you would earn a total of 87.00 from holding SAMS INTERNAT R or generate 50.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Daito Trust Construction vs. SAMS INTERNAT R
Performance |
| Timeline |
| Daito Trust Construction |
| SAMS INTERNAT R |
Daito Trust and SAMS INTERNAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daito Trust and SAMS INTERNAT
The main advantage of trading using opposite Daito Trust and SAMS INTERNAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daito Trust position performs unexpectedly, SAMS INTERNAT 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 SAMS INTERNAT will offset losses from the drop in SAMS INTERNAT's long position.| Daito Trust vs. Superior Plus Corp | Daito Trust vs. SIVERS SEMICONDUCTORS AB | Daito Trust vs. Reliance Steel Aluminum | Daito Trust vs. CHINA HUARONG ENERHD 50 |
| SAMS INTERNAT vs. Penn National Gaming | SAMS INTERNAT vs. Boyd Gaming | SAMS INTERNAT vs. GameStop Corp | SAMS INTERNAT vs. TSOGO SUN GAMING |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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