Correlation Between Dohome Public and II Group
Can any of the company-specific risk be diversified away by investing in both Dohome Public and II Group 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 Dohome Public and II Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dohome Public and II Group Public, you can compare the effects of market volatilities on Dohome Public and II Group 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 Dohome Public with a short position of II Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dohome Public and II Group.
Diversification Opportunities for Dohome Public and II Group
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dohome and IIG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Dohome Public and II Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II Group Public and Dohome Public 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 Dohome Public are associated (or correlated) with II Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II Group Public has no effect on the direction of Dohome Public i.e., Dohome Public and II Group go up and down completely randomly.
Pair Corralation between Dohome Public and II Group
Assuming the 90 days trading horizon Dohome Public is expected to under-perform the II Group. But the stock apears to be less risky and, when comparing its historical volatility, Dohome Public is 60.27 times less risky than II Group. The stock trades about -0.07 of its potential returns per unit of risk. The II Group Public is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 462.00 in II Group Public on August 28, 2024 and sell it today you would earn a total of 48.00 from holding II Group Public or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dohome Public vs. II Group Public
Performance |
| Timeline |
| Dohome Public |
| II Group Public |
Dohome Public and II Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dohome Public and II Group
The main advantage of trading using opposite Dohome Public and II Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dohome Public position performs unexpectedly, II Group 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 II Group will offset losses from the drop in II Group's long position.| Dohome Public vs. Com7 PCL | Dohome Public vs. Central Retail | Dohome Public vs. Siam Global House | Dohome Public vs. Home Product Center |
| II Group vs. Com7 PCL | II Group vs. Beryl 8 Plus | II Group vs. Hana Microelectronics Public | II Group vs. Jay Mart Public |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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