Correlation Between Daito Trust and INPOST SA
Can any of the company-specific risk be diversified away by investing in both Daito Trust and INPOST SA 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 INPOST SA 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 INPOST SA EO, you can compare the effects of market volatilities on Daito Trust and INPOST SA 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 INPOST SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daito Trust and INPOST SA.
Diversification Opportunities for Daito Trust and INPOST SA
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Daito and INPOST is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Daito Trust Construction and INPOST SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPOST SA EO 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 INPOST SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPOST SA EO has no effect on the direction of Daito Trust i.e., Daito Trust and INPOST SA go up and down completely randomly.
Pair Corralation between Daito Trust and INPOST SA
Assuming the 90 days horizon Daito Trust is expected to generate 5.8 times less return on investment than INPOST SA. But when comparing it to its historical volatility, Daito Trust Construction is 1.49 times less risky than INPOST SA. It trades about 0.02 of its potential returns per unit of risk. INPOST SA EO is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 879.00 in INPOST SA EO on October 11, 2024 and sell it today you would earn a total of 846.00 from holding INPOST SA EO or generate 96.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daito Trust Construction vs. INPOST SA EO
Performance |
| Timeline |
| Daito Trust Construction |
| INPOST SA EO |
Daito Trust and INPOST SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daito Trust and INPOST SA
The main advantage of trading using opposite Daito Trust and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daito Trust position performs unexpectedly, INPOST SA 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 INPOST SA will offset losses from the drop in INPOST SA's long position.| Daito Trust vs. PT Wintermar Offshore | Daito Trust vs. Goodyear Tire Rubber | Daito Trust vs. Martin Marietta Materials | Daito Trust vs. WT OFFSHORE |
| INPOST SA vs. INDOFOOD AGRI RES | INPOST SA vs. MAGNUM MINING EXP | INPOST SA vs. Thai Beverage Public | INPOST SA vs. ARDAGH METAL PACDL 0001 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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