Correlation Between Ducgiang Chemicals and Picomat Plastic
Can any of the company-specific risk be diversified away by investing in both Ducgiang Chemicals and Picomat Plastic 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 Picomat Plastic 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 Picomat Plastic JSC, you can compare the effects of market volatilities on Ducgiang Chemicals and Picomat Plastic 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 Picomat Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ducgiang Chemicals and Picomat Plastic.
Diversification Opportunities for Ducgiang Chemicals and Picomat Plastic
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ducgiang and Picomat is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ducgiang Chemicals Detergent and Picomat Plastic JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Picomat Plastic JSC 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 Picomat Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Picomat Plastic JSC has no effect on the direction of Ducgiang Chemicals i.e., Ducgiang Chemicals and Picomat Plastic go up and down completely randomly.
Pair Corralation between Ducgiang Chemicals and Picomat Plastic
Assuming the 90 days trading horizon Ducgiang Chemicals Detergent is expected to generate 1.11 times more return on investment than Picomat Plastic. However, Ducgiang Chemicals is 1.11 times more volatile than Picomat Plastic JSC. It trades about 0.14 of its potential returns per unit of risk. Picomat Plastic JSC is currently generating about 0.03 per unit of risk. If you would invest 10,756,600 in Ducgiang Chemicals Detergent on August 25, 2024 and sell it today you would earn a total of 643,400 from holding Ducgiang Chemicals Detergent or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ducgiang Chemicals Detergent vs. Picomat Plastic JSC
Performance |
| Timeline |
| Ducgiang Chemicals |
| Picomat Plastic JSC |
Ducgiang Chemicals and Picomat Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ducgiang Chemicals and Picomat Plastic
The main advantage of trading using opposite Ducgiang Chemicals and Picomat Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ducgiang Chemicals position performs unexpectedly, Picomat Plastic 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 Picomat Plastic will offset losses from the drop in Picomat Plastic's long position.| Ducgiang Chemicals vs. Tay Ninh Rubber | Ducgiang Chemicals vs. Hochiminh City Metal | Ducgiang Chemicals vs. RangDong Plastic JSC | Ducgiang Chemicals vs. Phuoc Hoa Rubber |
| Picomat Plastic vs. FIT INVEST JSC | Picomat Plastic vs. Damsan JSC | Picomat Plastic vs. An Phat Plastic | Picomat Plastic 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |