Correlation Between Damsan JSC and Vietnam Technological
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Vietnam Technological 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 Vietnam Technological into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Vietnam Technological And, you can compare the effects of market volatilities on Damsan JSC and Vietnam Technological 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 Vietnam Technological. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Vietnam Technological.
Diversification Opportunities for Damsan JSC and Vietnam Technological
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Damsan and Vietnam is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Vietnam Technological And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Technological And 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 Vietnam Technological. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Technological And has no effect on the direction of Damsan JSC i.e., Damsan JSC and Vietnam Technological go up and down completely randomly.
Pair Corralation between Damsan JSC and Vietnam Technological
Assuming the 90 days trading horizon Damsan JSC is expected to under-perform the Vietnam Technological. But the stock apears to be less risky and, when comparing its historical volatility, Damsan JSC is 1.27 times less risky than Vietnam Technological. The stock trades about -0.29 of its potential returns per unit of risk. The Vietnam Technological And is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,440,000 in Vietnam Technological And on October 29, 2024 and sell it today you would earn a total of 35,000 from holding Vietnam Technological And or generate 1.43% 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. Vietnam Technological And
Performance |
| Timeline |
| Damsan JSC |
| Vietnam Technological And |
Damsan JSC and Vietnam Technological Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Vietnam Technological
The main advantage of trading using opposite Damsan JSC and Vietnam Technological positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Vietnam Technological 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 Vietnam Technological will offset losses from the drop in Vietnam Technological'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 |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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