Correlation Between DSJA and Advanced Container
Can any of the company-specific risk be diversified away by investing in both DSJA and Advanced Container 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 DSJA and Advanced Container into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and Advanced Container Technologies, you can compare the effects of market volatilities on DSJA and Advanced Container 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 DSJA with a short position of Advanced Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and Advanced Container.
Diversification Opportunities for DSJA and Advanced Container
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DSJA and Advanced is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and Advanced Container Technologie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Container and DSJA 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 DSJA are associated (or correlated) with Advanced Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Container has no effect on the direction of DSJA i.e., DSJA and Advanced Container go up and down completely randomly.
Pair Corralation between DSJA and Advanced Container
If you would invest 0.01 in Advanced Container Technologies on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Advanced Container Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.8% |
| Values | Daily Returns |
DSJA vs. Advanced Container Technologie
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Advanced Container |
DSJA and Advanced Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and Advanced Container
The main advantage of trading using opposite DSJA and Advanced Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, Advanced Container 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 Advanced Container will offset losses from the drop in Advanced Container's long position.The idea behind DSJA and Advanced Container Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Advanced Container vs. Sonoco Products | Advanced Container vs. Avery Dennison Corp | Advanced Container vs. Ardagh Metal Packaging | Advanced Container vs. Ball Corporation |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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