Correlation Between Damsan JSC and Taseco Air
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Taseco Air 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 Taseco Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Taseco Air Services, you can compare the effects of market volatilities on Damsan JSC and Taseco Air 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 Taseco Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Taseco Air.
Diversification Opportunities for Damsan JSC and Taseco Air
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Damsan and Taseco is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Taseco Air Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taseco Air Services 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 Taseco Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taseco Air Services has no effect on the direction of Damsan JSC i.e., Damsan JSC and Taseco Air go up and down completely randomly.
Pair Corralation between Damsan JSC and Taseco Air
Assuming the 90 days trading horizon Damsan JSC is expected to under-perform the Taseco Air. In addition to that, Damsan JSC is 1.21 times more volatile than Taseco Air Services. It trades about -0.29 of its total potential returns per unit of risk. Taseco Air Services is currently generating about -0.2 per unit of volatility. If you would invest 5,540,000 in Taseco Air Services on October 29, 2024 and sell it today you would lose (190,000) from holding Taseco Air Services or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Damsan JSC vs. Taseco Air Services
Performance |
| Timeline |
| Damsan JSC |
| Taseco Air Services |
Damsan JSC and Taseco Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Taseco Air
The main advantage of trading using opposite Damsan JSC and Taseco Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Taseco Air 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 Taseco Air will offset losses from the drop in Taseco Air's long position.| Damsan JSC vs. POST TELECOMMU | Damsan JSC vs. Vietnam Technological And | Damsan JSC vs. Elcom Technology Communications | Damsan JSC vs. Asia Commercial Bank |
| Taseco Air vs. Fecon Mining JSC | Taseco Air vs. PetroVietnam Drilling Well | Taseco Air vs. Long An Food | Taseco Air vs. Ba Ria Thermal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |