Correlation Between Ducgiang Chemicals and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both Ducgiang Chemicals and POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU, you can compare the effects of market volatilities on Ducgiang Chemicals and POST TELECOMMU 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 POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ducgiang Chemicals and POST TELECOMMU.
Diversification Opportunities for Ducgiang Chemicals and POST TELECOMMU
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ducgiang and POST is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ducgiang Chemicals Detergent and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU 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 POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of Ducgiang Chemicals i.e., Ducgiang Chemicals and POST TELECOMMU go up and down completely randomly.
Pair Corralation between Ducgiang Chemicals and POST TELECOMMU
Assuming the 90 days trading horizon Ducgiang Chemicals Detergent is expected to generate 0.12 times more return on investment than POST TELECOMMU. However, Ducgiang Chemicals Detergent is 8.15 times less risky than POST TELECOMMU. It trades about -0.25 of its potential returns per unit of risk. POST TELECOMMU is currently generating about -0.14 per unit of risk. If you would invest 11,600,000 in Ducgiang Chemicals Detergent on October 20, 2024 and sell it today you would lose (620,000) from holding Ducgiang Chemicals Detergent or give up 5.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ducgiang Chemicals Detergent vs. POST TELECOMMU
Performance |
| Timeline |
| Ducgiang Chemicals |
| POST TELECOMMU |
Ducgiang Chemicals and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ducgiang Chemicals and POST TELECOMMU
The main advantage of trading using opposite Ducgiang Chemicals and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ducgiang Chemicals position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| Ducgiang Chemicals vs. FIT INVEST JSC | Ducgiang Chemicals vs. Damsan JSC | Ducgiang Chemicals vs. An Phat Plastic | Ducgiang Chemicals vs. APG Securities Joint |
| POST TELECOMMU vs. HUD1 Investment and | POST TELECOMMU vs. IDJ FINANCIAL | POST TELECOMMU vs. PVI Reinsurance Corp | POST TELECOMMU vs. SMC Investment Trading |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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