Correlation Between Ducgiang Chemicals and An Phat
Can any of the company-specific risk be diversified away by investing in both Ducgiang Chemicals and An Phat 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 Ducgiang Chemicals and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ducgiang Chemicals Detergent and An Phat Plastic, you can compare the effects of market volatilities on Ducgiang Chemicals and An Phat 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 Ducgiang Chemicals with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ducgiang Chemicals and An Phat.
Diversification Opportunities for Ducgiang Chemicals and An Phat
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ducgiang and AAA is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ducgiang Chemicals Detergent and An Phat Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Plastic and Ducgiang Chemicals 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 Ducgiang Chemicals Detergent are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Plastic has no effect on the direction of Ducgiang Chemicals i.e., Ducgiang Chemicals and An Phat go up and down completely randomly.
Pair Corralation between Ducgiang Chemicals and An Phat
Assuming the 90 days trading horizon Ducgiang Chemicals Detergent is expected to under-perform the An Phat. In addition to that, Ducgiang Chemicals is 1.84 times more volatile than An Phat Plastic. It trades about -0.02 of its total potential returns per unit of risk. An Phat Plastic is currently generating about 0.22 per unit of volatility. If you would invest 830,000 in An Phat Plastic on September 15, 2024 and sell it today you would earn a total of 42,000 from holding An Phat Plastic or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ducgiang Chemicals Detergent vs. An Phat Plastic
Performance |
| Timeline |
| Ducgiang Chemicals |
| An Phat Plastic |
Ducgiang Chemicals and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ducgiang Chemicals and An Phat
The main advantage of trading using opposite Ducgiang Chemicals and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ducgiang Chemicals position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| Ducgiang Chemicals vs. FIT INVEST JSC | Ducgiang Chemicals vs. Damsan JSC | Ducgiang Chemicals vs. An Phat Plastic | Ducgiang Chemicals vs. Alphanam ME |
| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. Alphanam ME | An Phat vs. APG Securities Joint |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |