Correlation Between Investment and Din Capital
Can any of the company-specific risk be diversified away by investing in both Investment and Din Capital 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 Investment and Din Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment and Industrial and Din Capital Investment, you can compare the effects of market volatilities on Investment and Din Capital 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 Investment with a short position of Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Din Capital.
Diversification Opportunities for Investment and Din Capital
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Investment and Din is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Investment and Industrial and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital Investment and Investment 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 Investment and Industrial are associated (or correlated) with Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of Investment i.e., Investment and Din Capital go up and down completely randomly.
Pair Corralation between Investment and Din Capital
Assuming the 90 days trading horizon Investment and Industrial is expected to generate 1.11 times more return on investment than Din Capital. However, Investment is 1.11 times more volatile than Din Capital Investment. It trades about 0.2 of its potential returns per unit of risk. Din Capital Investment is currently generating about 0.05 per unit of risk. If you would invest 6,800,000 in Investment and Industrial on October 11, 2024 and sell it today you would earn a total of 350,000 from holding Investment and Industrial or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment and Industrial vs. Din Capital Investment
Performance |
| Timeline |
| Investment and Industrial |
| Din Capital Investment |
Investment and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Din Capital
The main advantage of trading using opposite Investment and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment position performs unexpectedly, Din Capital 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 Din Capital will offset losses from the drop in Din Capital's long position.| Investment vs. PetroVietnam Transportation Corp | Investment vs. Elcom Technology Communications | Investment vs. Ducgiang Chemicals Detergent | Investment vs. Pacific Petroleum Transportation |
| Din Capital vs. Thanh Dat Investment | Din Capital vs. Nafoods Group JSC | Din Capital vs. Hanoi Beer Alcohol | Din Capital vs. Elcom Technology Communications |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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