Correlation Between Ha Long and Din Capital
Can any of the company-specific risk be diversified away by investing in both Ha Long and Din Capital 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 Ha Long and Din Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ha Long Investment and Din Capital Investment, you can compare the effects of market volatilities on Ha Long and Din Capital 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 Ha Long with a short position of Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ha Long and Din Capital.
Diversification Opportunities for Ha Long and Din Capital
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HID and Din is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ha Long Investment and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital Investment and Ha Long 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 Ha Long Investment are associated (or correlated) with Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of Ha Long i.e., Ha Long and Din Capital go up and down completely randomly.
Pair Corralation between Ha Long and Din Capital
Assuming the 90 days trading horizon Ha Long Investment is expected to generate 1.62 times more return on investment than Din Capital. However, Ha Long is 1.62 times more volatile than Din Capital Investment. It trades about 0.33 of its potential returns per unit of risk. Din Capital Investment is currently generating about 0.09 per unit of risk. If you would invest 261,000 in Ha Long Investment on November 7, 2024 and sell it today you would earn a total of 22,000 from holding Ha Long Investment or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 72.22% |
| Values | Daily Returns |
Ha Long Investment vs. Din Capital Investment
Performance |
| Timeline |
| Ha Long Investment |
| Din Capital Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Ha Long and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ha Long and Din Capital
The main advantage of trading using opposite Ha Long and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ha Long position performs unexpectedly, Din Capital 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 Din Capital will offset losses from the drop in Din Capital's long position.| Ha Long vs. FIT INVEST JSC | Ha Long vs. Damsan JSC | Ha Long vs. An Phat Plastic | Ha Long vs. APG Securities Joint |
| Din Capital vs. Elcom Technology Communications | Din Capital vs. Innovative Technology Development | Din Capital vs. Vietnam JSCmmercial Bank | Din Capital vs. Transport and Industry |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world |