Correlation Between Damsan JSC and Tien Giang
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Tien Giang 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 Tien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Tien Giang Investment, you can compare the effects of market volatilities on Damsan JSC and Tien Giang 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 Tien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Tien Giang.
Diversification Opportunities for Damsan JSC and Tien Giang
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Damsan and Tien is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Tien Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Giang Investment 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 Tien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Giang Investment has no effect on the direction of Damsan JSC i.e., Damsan JSC and Tien Giang go up and down completely randomly.
Pair Corralation between Damsan JSC and Tien Giang
Assuming the 90 days trading horizon Damsan JSC is expected to under-perform the Tien Giang. In addition to that, Damsan JSC is 1.49 times more volatile than Tien Giang Investment. It trades about -0.06 of its total potential returns per unit of risk. Tien Giang Investment is currently generating about 0.23 per unit of volatility. If you would invest 4,317,967 in Tien Giang Investment on October 25, 2024 and sell it today you would earn a total of 732,033 from holding Tien Giang Investment or generate 16.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Damsan JSC vs. Tien Giang Investment
Performance |
| Timeline |
| Damsan JSC |
| Tien Giang Investment |
Damsan JSC and Tien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Tien Giang
The main advantage of trading using opposite Damsan JSC and Tien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Tien Giang 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 Tien Giang will offset losses from the drop in Tien Giang's long position.| Damsan JSC vs. Song Hong Aluminum | Damsan JSC vs. Tien Giang Investment | Damsan JSC vs. Hoang Huy Investment | Damsan JSC vs. Dinhvu Port Investment |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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