Correlation Between Damsan JSC and Binh Duong
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Binh Duong 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 Binh Duong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Binh Duong Construction, you can compare the effects of market volatilities on Damsan JSC and Binh Duong 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 Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Binh Duong.
Diversification Opportunities for Damsan JSC and Binh Duong
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Damsan and Binh is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Binh Duong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Duong Construction 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 Binh Duong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Duong Construction has no effect on the direction of Damsan JSC i.e., Damsan JSC and Binh Duong go up and down completely randomly.
Pair Corralation between Damsan JSC and Binh Duong
Assuming the 90 days trading horizon Damsan JSC is expected to generate 1.49 times more return on investment than Binh Duong. However, Damsan JSC is 1.49 times more volatile than Binh Duong Construction. It trades about 0.02 of its potential returns per unit of risk. Binh Duong Construction is currently generating about 0.03 per unit of risk. If you would invest 772,599 in Damsan JSC on August 28, 2024 and sell it today you would earn a total of 105,401 from holding Damsan JSC or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Damsan JSC vs. Binh Duong Construction
Performance |
| Timeline |
| Damsan JSC |
| Binh Duong Construction |
Damsan JSC and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Binh Duong
The main advantage of trading using opposite Damsan JSC and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Binh Duong 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 Binh Duong will offset losses from the drop in Binh Duong's long position.| Damsan JSC vs. Fecon Mining JSC | Damsan JSC vs. Saigon Telecommunication Technologies | Damsan JSC vs. Investment and Industrial | Damsan JSC vs. VTC Telecommunications JSC |
| Binh Duong vs. An Phat Plastic | Binh Duong vs. Plastic Additives JSC | Binh Duong vs. Hanoi Plastics JSC | Binh Duong 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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