Correlation Between Duc Thanh and Atesco Industrial
Can any of the company-specific risk be diversified away by investing in both Duc Thanh and Atesco Industrial 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 Duc Thanh and Atesco Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duc Thanh Wood and Atesco Industrial Cartering, you can compare the effects of market volatilities on Duc Thanh and Atesco Industrial 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 Duc Thanh with a short position of Atesco Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duc Thanh and Atesco Industrial.
Diversification Opportunities for Duc Thanh and Atesco Industrial
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Duc and Atesco is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Duc Thanh Wood and Atesco Industrial Cartering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atesco Industrial and Duc Thanh 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 Duc Thanh Wood are associated (or correlated) with Atesco Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atesco Industrial has no effect on the direction of Duc Thanh i.e., Duc Thanh and Atesco Industrial go up and down completely randomly.
Pair Corralation between Duc Thanh and Atesco Industrial
Assuming the 90 days trading horizon Duc Thanh Wood is expected to generate 0.17 times more return on investment than Atesco Industrial. However, Duc Thanh Wood is 5.74 times less risky than Atesco Industrial. It trades about 0.15 of its potential returns per unit of risk. Atesco Industrial Cartering is currently generating about -0.3 per unit of risk. If you would invest 2,540,909 in Duc Thanh Wood on August 29, 2024 and sell it today you would earn a total of 84,091 from holding Duc Thanh Wood or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Duc Thanh Wood vs. Atesco Industrial Cartering
Performance |
| Timeline |
| Duc Thanh Wood |
| Atesco Industrial |
Duc Thanh and Atesco Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duc Thanh and Atesco Industrial
The main advantage of trading using opposite Duc Thanh and Atesco Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duc Thanh position performs unexpectedly, Atesco Industrial 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 Atesco Industrial will offset losses from the drop in Atesco Industrial's long position.| Duc Thanh vs. FIT INVEST JSC | Duc Thanh vs. Damsan JSC | Duc Thanh vs. An Phat Plastic | Duc Thanh vs. APG Securities Joint |
| Atesco Industrial vs. Idico JSC | Atesco Industrial vs. Alphanam ME | Atesco Industrial vs. Hochiminh City Metal | Atesco Industrial vs. Danang Education Investment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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