Correlation Between Damsan JSC and Construction
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Construction 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 Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Construction And Investment, you can compare the effects of market volatilities on Damsan JSC and Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Construction.
Diversification Opportunities for Damsan JSC and Construction
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Damsan and Construction is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Construction And Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Construction And Inv 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Construction And Inv has no effect on the direction of Damsan JSC i.e., Damsan JSC and Construction go up and down completely randomly.
Pair Corralation between Damsan JSC and Construction
Assuming the 90 days trading horizon Damsan JSC is expected to under-perform the Construction. In addition to that, Damsan JSC is 1.05 times more volatile than Construction And Investment. It trades about -0.03 of its total potential returns per unit of risk. Construction And Investment is currently generating about 0.07 per unit of volatility. If you would invest 2,882,917 in Construction And Investment on August 25, 2024 and sell it today you would earn a total of 1,057,083 from holding Construction And Investment or generate 36.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Damsan JSC vs. Construction And Investment
Performance |
| Timeline |
| Damsan JSC |
| Construction And Inv |
Damsan JSC and Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Construction
The main advantage of trading using opposite Damsan JSC and Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Construction 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 Construction will offset losses from the drop in Construction's long position.| Damsan JSC vs. Post and Telecommunications | Damsan JSC vs. Dinhvu Port Investment | Damsan JSC vs. Sea Air Freight | Damsan JSC vs. Vu Dang Investment |
| Construction vs. Hochiminh City Metal | Construction vs. Ha Long Investment | Construction vs. Tin Nghia Industrial | Construction vs. HUD1 Investment and |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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