Correlation Between Damsan JSC and An Phat
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and An Phat 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 An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and An Phat Holdings, you can compare the effects of market volatilities on Damsan JSC and An Phat 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 An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and An Phat.
Diversification Opportunities for Damsan JSC and An Phat
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Damsan and APH is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and An Phat Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Holdings 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 An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Holdings has no effect on the direction of Damsan JSC i.e., Damsan JSC and An Phat go up and down completely randomly.
Pair Corralation between Damsan JSC and An Phat
Assuming the 90 days trading horizon Damsan JSC is expected to under-perform the An Phat. But the stock apears to be less risky and, when comparing its historical volatility, Damsan JSC is 1.21 times less risky than An Phat. The stock trades about -0.04 of its potential returns per unit of risk. The An Phat Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 671,000 in An Phat Holdings on October 17, 2024 and sell it today you would earn a total of 22,000 from holding An Phat Holdings or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Damsan JSC vs. An Phat Holdings
Performance |
| Timeline |
| Damsan JSC |
| An Phat Holdings |
Damsan JSC and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and An Phat
The main advantage of trading using opposite Damsan JSC and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| Damsan JSC vs. Viet Nam Construction | Damsan JSC vs. Visicons Construction and | Damsan JSC vs. Elcom Technology Communications | Damsan JSC vs. Fecon Mining JSC |
| An Phat vs. Song Hong Construction | An Phat vs. Techno Agricultural Supplying | An Phat vs. Saigon Machinery Spare | An Phat vs. PVI Reinsurance Corp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |