Correlation Between Dong Nai and Agriculture Printing
Can any of the company-specific risk be diversified away by investing in both Dong Nai and Agriculture Printing 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 Nai and Agriculture Printing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dong Nai Plastic and Agriculture Printing and, you can compare the effects of market volatilities on Dong Nai and Agriculture Printing 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 Nai with a short position of Agriculture Printing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dong Nai and Agriculture Printing.
Diversification Opportunities for Dong Nai and Agriculture Printing
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dong and Agriculture is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dong Nai Plastic and Agriculture Printing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agriculture Printing and and Dong Nai 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 Nai Plastic are associated (or correlated) with Agriculture Printing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agriculture Printing and has no effect on the direction of Dong Nai i.e., Dong Nai and Agriculture Printing go up and down completely randomly.
Pair Corralation between Dong Nai and Agriculture Printing
Assuming the 90 days trading horizon Dong Nai Plastic is expected to generate 2.24 times more return on investment than Agriculture Printing. However, Dong Nai is 2.24 times more volatile than Agriculture Printing and. It trades about 0.03 of its potential returns per unit of risk. Agriculture Printing and is currently generating about 0.04 per unit of risk. If you would invest 1,970,000 in Dong Nai Plastic on September 3, 2024 and sell it today you would earn a total of 80,000 from holding Dong Nai Plastic or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Dong Nai Plastic vs. Agriculture Printing and
Performance |
| Timeline |
| Dong Nai Plastic |
| Agriculture Printing and |
Dong Nai and Agriculture Printing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dong Nai and Agriculture Printing
The main advantage of trading using opposite Dong Nai and Agriculture Printing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dong Nai position performs unexpectedly, Agriculture Printing 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 Agriculture Printing will offset losses from the drop in Agriculture Printing's long position.| Dong Nai vs. FIT INVEST JSC | Dong Nai vs. Damsan JSC | Dong Nai vs. An Phat Plastic | Dong Nai vs. Alphanam ME |
| Agriculture Printing vs. FIT INVEST JSC | Agriculture Printing vs. Damsan JSC | Agriculture Printing vs. An Phat Plastic | Agriculture Printing 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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