Correlation Between Damsan JSC and Van Phu
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Van Phu 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 Van Phu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Van Phu , you can compare the effects of market volatilities on Damsan JSC and Van Phu 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 Van Phu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Van Phu.
Diversification Opportunities for Damsan JSC and Van Phu
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Damsan and Van is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Van Phu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Phu 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 Van Phu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Phu has no effect on the direction of Damsan JSC i.e., Damsan JSC and Van Phu go up and down completely randomly.
Pair Corralation between Damsan JSC and Van Phu
Assuming the 90 days trading horizon Damsan JSC is expected to generate 1.97 times more return on investment than Van Phu. However, Damsan JSC is 1.97 times more volatile than Van Phu . It trades about 0.1 of its potential returns per unit of risk. Van Phu is currently generating about -0.01 per unit of risk. If you would invest 910,000 in Damsan JSC on August 31, 2024 and sell it today you would earn a total of 30,000 from holding Damsan JSC or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Damsan JSC vs. Van Phu
Performance |
| Timeline |
| Damsan JSC |
| Van Phu |
Damsan JSC and Van Phu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damsan JSC and Van Phu
The main advantage of trading using opposite Damsan JSC and Van Phu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Van Phu 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 Van Phu will offset losses from the drop in Van Phu's long position.| Damsan JSC vs. Tien Giang Investment | Damsan JSC vs. Vu Dang Investment | Damsan JSC vs. Bao Ngoc Investment | Damsan JSC vs. Vina2 Investment and |
| Van Phu vs. Hochiminh City Metal | Van Phu vs. Pacific Petroleum Transportation | Van Phu vs. Bao Ngoc Investment | Van Phu vs. Hai An Transport |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |