Correlation Between Damsan JSC and Transport
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Transport 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 Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Transport and Industry, you can compare the effects of market volatilities on Damsan JSC and Transport 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 Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Transport.
Diversification Opportunities for Damsan JSC and Transport
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Damsan and Transport is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Transport and Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport and 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 Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport and Industry has no effect on the direction of Damsan JSC i.e., Damsan JSC and Transport go up and down completely randomly.
Pair Corralation between Damsan JSC and Transport
Assuming the 90 days trading horizon Damsan JSC is expected to generate 1.32 times more return on investment than Transport. However, Damsan JSC is 1.32 times more volatile than Transport and Industry. It trades about -0.32 of its potential returns per unit of risk. Transport and Industry is currently generating about -0.5 per unit of risk. If you would invest 880,000 in Damsan JSC on November 4, 2024 and sell it today you would lose (51,000) from holding Damsan JSC or give up 5.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Damsan JSC vs. Transport and Industry
Performance |
| Timeline |
| Damsan JSC |
| Transport and Industry |
Damsan JSC and Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Transport
The main advantage of trading using opposite Damsan JSC and Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Transport 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 Transport will offset losses from the drop in Transport's long position.| Damsan JSC vs. Pha Lai Thermal | Damsan JSC vs. Fecon Mining JSC | Damsan JSC vs. Innovative Technology Development | Damsan JSC vs. Dong A Hotel |
| Transport vs. Everland Investment JSC | Transport vs. TDT Investment and | Transport vs. PV2 Investment JSC | Transport vs. Asia Pacific Investment |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |