Correlation Between Foreign Trade and IDJ FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Foreign Trade and IDJ FINANCIAL 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 Foreign Trade and IDJ FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foreign Trade Development and IDJ FINANCIAL, you can compare the effects of market volatilities on Foreign Trade and IDJ FINANCIAL 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 Foreign Trade with a short position of IDJ FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foreign Trade and IDJ FINANCIAL.
Diversification Opportunities for Foreign Trade and IDJ FINANCIAL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Foreign and IDJ is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Foreign Trade Development and IDJ FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDJ FINANCIAL and Foreign Trade 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 Foreign Trade Development are associated (or correlated) with IDJ FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDJ FINANCIAL has no effect on the direction of Foreign Trade i.e., Foreign Trade and IDJ FINANCIAL go up and down completely randomly.
Pair Corralation between Foreign Trade and IDJ FINANCIAL
If you would invest 1,600,000 in Foreign Trade Development on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Foreign Trade Development or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 36.36% |
| Values | Daily Returns |
Foreign Trade Development vs. IDJ FINANCIAL
Performance |
| Timeline |
| Foreign Trade Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| IDJ FINANCIAL |
Foreign Trade and IDJ FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foreign Trade and IDJ FINANCIAL
The main advantage of trading using opposite Foreign Trade and IDJ FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foreign Trade position performs unexpectedly, IDJ FINANCIAL 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 IDJ FINANCIAL will offset losses from the drop in IDJ FINANCIAL's long position.| Foreign Trade vs. Techcom Vietnam REIT | Foreign Trade vs. Din Capital Investment | Foreign Trade vs. Vien Dong Investment | Foreign Trade vs. Thanh Dat Investment |
| IDJ FINANCIAL vs. DIC Holdings Construction | IDJ FINANCIAL vs. Development Investment Construction | IDJ FINANCIAL vs. Tin Nghia Industrial | IDJ FINANCIAL vs. Techno Agricultural Supplying |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |