Correlation Between Dong A and Telecoms Informatics
Can any of the company-specific risk be diversified away by investing in both Dong A and Telecoms Informatics 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 Dong A and Telecoms Informatics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dong A Hotel and Telecoms Informatics JSC, you can compare the effects of market volatilities on Dong A and Telecoms Informatics 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 Dong A with a short position of Telecoms Informatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dong A and Telecoms Informatics.
Diversification Opportunities for Dong A and Telecoms Informatics
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dong and Telecoms is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dong A Hotel and Telecoms Informatics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecoms Informatics JSC and Dong A 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 Dong A Hotel are associated (or correlated) with Telecoms Informatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecoms Informatics JSC has no effect on the direction of Dong A i.e., Dong A and Telecoms Informatics go up and down completely randomly.
Pair Corralation between Dong A and Telecoms Informatics
Assuming the 90 days trading horizon Dong A Hotel is expected to under-perform the Telecoms Informatics. But the stock apears to be less risky and, when comparing its historical volatility, Dong A Hotel is 2.03 times less risky than Telecoms Informatics. The stock trades about -0.12 of its potential returns per unit of risk. The Telecoms Informatics JSC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,076,078 in Telecoms Informatics JSC on September 12, 2024 and sell it today you would earn a total of 223,922 from holding Telecoms Informatics JSC or generate 20.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dong A Hotel vs. Telecoms Informatics JSC
Performance |
| Timeline |
| Dong A Hotel |
| Telecoms Informatics JSC |
Dong A and Telecoms Informatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dong A and Telecoms Informatics
The main advantage of trading using opposite Dong A and Telecoms Informatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dong A position performs unexpectedly, Telecoms Informatics 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 Telecoms Informatics will offset losses from the drop in Telecoms Informatics' long position.| Dong A vs. Telecoms Informatics JSC | Dong A vs. POST TELECOMMU | Dong A vs. South Basic Chemicals | Dong A vs. Saigon Beer Alcohol |
| Telecoms Informatics vs. FIT INVEST JSC | Telecoms Informatics vs. Damsan JSC | Telecoms Informatics vs. An Phat Plastic | Telecoms Informatics vs. Alphanam ME |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |