Correlation Between Damsan JSC and Tien Son
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Tien Son 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 Damsan JSC and Tien Son into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Tien Son Thanh, you can compare the effects of market volatilities on Damsan JSC and Tien Son 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 Damsan JSC with a short position of Tien Son. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Tien Son.
Diversification Opportunities for Damsan JSC and Tien Son
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Damsan and Tien is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Tien Son Thanh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Son Thanh and Damsan JSC 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 Damsan JSC are associated (or correlated) with Tien Son. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Son Thanh has no effect on the direction of Damsan JSC i.e., Damsan JSC and Tien Son go up and down completely randomly.
Pair Corralation between Damsan JSC and Tien Son
Assuming the 90 days trading horizon Damsan JSC is expected to generate 1.16 times more return on investment than Tien Son. However, Damsan JSC is 1.16 times more volatile than Tien Son Thanh. It trades about 0.01 of its potential returns per unit of risk. Tien Son Thanh is currently generating about -0.03 per unit of risk. If you would invest 991,634 in Damsan JSC on November 28, 2024 and sell it today you would lose (32,634) from holding Damsan JSC or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Damsan JSC vs. Tien Son Thanh
Performance |
| Timeline |
| Damsan JSC |
| Tien Son Thanh |
Damsan JSC and Tien Son Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Tien Son
The main advantage of trading using opposite Damsan JSC and Tien Son positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Tien Son 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 Tien Son will offset losses from the drop in Tien Son's long position.| Damsan JSC vs. FIT INVEST JSC | Damsan JSC vs. An Phat Plastic | Damsan JSC vs. Alphanam ME | Damsan JSC vs. APG Securities Joint |
| Tien Son vs. Tien Giang Investment | Tien Son vs. Duong Hieu Trading | Tien Son vs. HVC Investment and | Tien Son vs. Ha Long Investment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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