Correlation Between Damsan JSC and Bentre Aquaproduct
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Bentre Aquaproduct 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 Bentre Aquaproduct into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Bentre Aquaproduct Import, you can compare the effects of market volatilities on Damsan JSC and Bentre Aquaproduct 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 Bentre Aquaproduct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Bentre Aquaproduct.
Diversification Opportunities for Damsan JSC and Bentre Aquaproduct
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Damsan and Bentre is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Bentre Aquaproduct Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentre Aquaproduct Import 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 Bentre Aquaproduct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentre Aquaproduct Import has no effect on the direction of Damsan JSC i.e., Damsan JSC and Bentre Aquaproduct go up and down completely randomly.
Pair Corralation between Damsan JSC and Bentre Aquaproduct
Assuming the 90 days trading horizon Damsan JSC is expected to under-perform the Bentre Aquaproduct. In addition to that, Damsan JSC is 2.34 times more volatile than Bentre Aquaproduct Import. It trades about -0.2 of its total potential returns per unit of risk. Bentre Aquaproduct Import is currently generating about -0.03 per unit of volatility. If you would invest 3,975,000 in Bentre Aquaproduct Import on August 24, 2024 and sell it today you would lose (20,000) from holding Bentre Aquaproduct Import or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Damsan JSC vs. Bentre Aquaproduct Import
Performance |
| Timeline |
| Damsan JSC |
| Bentre Aquaproduct Import |
Damsan JSC and Bentre Aquaproduct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Bentre Aquaproduct
The main advantage of trading using opposite Damsan JSC and Bentre Aquaproduct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Bentre Aquaproduct 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 Bentre Aquaproduct will offset losses from the drop in Bentre Aquaproduct's long position.| Damsan JSC vs. FIT INVEST JSC | Damsan JSC vs. An Phat Plastic | Damsan JSC vs. APG Securities Joint | Damsan JSC vs. Binhthuan Agriculture Services |
| Bentre Aquaproduct vs. Foreign Trade Development | Bentre Aquaproduct vs. Taseco Air Services | Bentre Aquaproduct vs. Sao Ta Foods | Bentre Aquaproduct vs. FPT Digital Retail |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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