Correlation Between Hai An and IDJ FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Hai An 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 Hai An and IDJ FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hai An Transport and IDJ FINANCIAL, you can compare the effects of market volatilities on Hai An 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 Hai An with a short position of IDJ FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and IDJ FINANCIAL.
Diversification Opportunities for Hai An and IDJ FINANCIAL
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hai and IDJ is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport and IDJ FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDJ FINANCIAL and Hai An 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 Hai An Transport 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 Hai An i.e., Hai An and IDJ FINANCIAL go up and down completely randomly.
Pair Corralation between Hai An and IDJ FINANCIAL
Assuming the 90 days trading horizon Hai An Transport is expected to generate 0.66 times more return on investment than IDJ FINANCIAL. However, Hai An Transport is 1.51 times less risky than IDJ FINANCIAL. It trades about 0.08 of its potential returns per unit of risk. IDJ FINANCIAL is currently generating about 0.0 per unit of risk. If you would invest 2,011,594 in Hai An Transport on September 2, 2024 and sell it today you would earn a total of 2,793,406 from holding Hai An Transport or generate 138.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hai An Transport vs. IDJ FINANCIAL
Performance |
| Timeline |
| Hai An Transport |
| IDJ FINANCIAL |
Hai An and IDJ FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hai An and IDJ FINANCIAL
The main advantage of trading using opposite Hai An and IDJ FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An 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.| Hai An vs. FPT Digital Retail | Hai An vs. IDJ FINANCIAL | Hai An vs. CEO Group JSC | Hai An vs. Vincom Retail JSC |
| IDJ FINANCIAL vs. FIT INVEST JSC | IDJ FINANCIAL vs. Damsan JSC | IDJ FINANCIAL vs. An Phat Plastic | IDJ FINANCIAL 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |