Correlation Between Damsan JSC and Southern Rubber
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Southern Rubber 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 Southern Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Southern Rubber Industry, you can compare the effects of market volatilities on Damsan JSC and Southern Rubber 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 Southern Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Southern Rubber.
Diversification Opportunities for Damsan JSC and Southern Rubber
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Damsan and Southern is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Southern Rubber Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Rubber Industry 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 Southern Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Rubber Industry has no effect on the direction of Damsan JSC i.e., Damsan JSC and Southern Rubber go up and down completely randomly.
Pair Corralation between Damsan JSC and Southern Rubber
Assuming the 90 days trading horizon Damsan JSC is expected to generate 1.2 times more return on investment than Southern Rubber. However, Damsan JSC is 1.2 times more volatile than Southern Rubber Industry. It trades about 0.01 of its potential returns per unit of risk. Southern Rubber Industry is currently generating about 0.0 per unit of risk. If you would invest 868,180 in Damsan JSC on August 28, 2024 and sell it today you would earn a total of 9,820 from holding Damsan JSC or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Damsan JSC vs. Southern Rubber Industry
Performance |
| Timeline |
| Damsan JSC |
| Southern Rubber Industry |
Damsan JSC and Southern Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Southern Rubber
The main advantage of trading using opposite Damsan JSC and Southern Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Southern Rubber 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 Southern Rubber will offset losses from the drop in Southern Rubber'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 |
| Southern Rubber vs. FIT INVEST JSC | Southern Rubber vs. Damsan JSC | Southern Rubber vs. An Phat Plastic | Southern Rubber vs. APG Securities Joint |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |