Correlation Between Da Nang and 1369 Construction
Can any of the company-specific risk be diversified away by investing in both Da Nang and 1369 Construction 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 Da Nang and 1369 Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Da Nang Construction and 1369 Construction JSC, you can compare the effects of market volatilities on Da Nang and 1369 Construction 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 Da Nang with a short position of 1369 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Da Nang and 1369 Construction.
Diversification Opportunities for Da Nang and 1369 Construction
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DXV and 1369 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Da Nang Construction and 1369 Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1369 Construction JSC and Da Nang 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 Da Nang Construction are associated (or correlated) with 1369 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1369 Construction JSC has no effect on the direction of Da Nang i.e., Da Nang and 1369 Construction go up and down completely randomly.
Pair Corralation between Da Nang and 1369 Construction
Assuming the 90 days trading horizon Da Nang Construction is expected to under-perform the 1369 Construction. In addition to that, Da Nang is 1.46 times more volatile than 1369 Construction JSC. It trades about -0.09 of its total potential returns per unit of risk. 1369 Construction JSC is currently generating about 0.0 per unit of volatility. If you would invest 680,000 in 1369 Construction JSC on September 3, 2024 and sell it today you would lose (20,000) from holding 1369 Construction JSC or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Da Nang Construction vs. 1369 Construction JSC
Performance |
| Timeline |
| Da Nang Construction |
| 1369 Construction JSC |
Da Nang and 1369 Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Da Nang and 1369 Construction
The main advantage of trading using opposite Da Nang and 1369 Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Da Nang position performs unexpectedly, 1369 Construction 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 1369 Construction will offset losses from the drop in 1369 Construction's long position.The idea behind Da Nang Construction and 1369 Construction JSC 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.| 1369 Construction vs. FIT INVEST JSC | 1369 Construction vs. Damsan JSC | 1369 Construction vs. An Phat Plastic | 1369 Construction 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |