Correlation Between Idico JSC and Duc Thanh
Can any of the company-specific risk be diversified away by investing in both Idico JSC and Duc Thanh 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 Idico JSC and Duc Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Idico JSC and Duc Thanh Wood, you can compare the effects of market volatilities on Idico JSC and Duc Thanh 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 Idico JSC with a short position of Duc Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idico JSC and Duc Thanh.
Diversification Opportunities for Idico JSC and Duc Thanh
Very weak diversification
The 3 months correlation between Idico and Duc is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Idico JSC and Duc Thanh Wood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duc Thanh Wood and Idico JSC 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 Idico JSC are associated (or correlated) with Duc Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duc Thanh Wood has no effect on the direction of Idico JSC i.e., Idico JSC and Duc Thanh go up and down completely randomly.
Pair Corralation between Idico JSC and Duc Thanh
Assuming the 90 days trading horizon Idico JSC is expected to generate 1.47 times more return on investment than Duc Thanh. However, Idico JSC is 1.47 times more volatile than Duc Thanh Wood. It trades about 0.1 of its potential returns per unit of risk. Duc Thanh Wood is currently generating about 0.15 per unit of risk. If you would invest 5,340,000 in Idico JSC on August 29, 2024 and sell it today you would earn a total of 180,000 from holding Idico JSC or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Idico JSC vs. Duc Thanh Wood
Performance |
| Timeline |
| Idico JSC |
| Duc Thanh Wood |
Idico JSC and Duc Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idico JSC and Duc Thanh
The main advantage of trading using opposite Idico JSC and Duc Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idico JSC position performs unexpectedly, Duc Thanh 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 Duc Thanh will offset losses from the drop in Duc Thanh's long position.| Idico JSC vs. FIT INVEST JSC | Idico JSC vs. Damsan JSC | Idico JSC vs. An Phat Plastic | Idico JSC vs. APG Securities Joint |
| Duc Thanh vs. FIT INVEST JSC | Duc Thanh vs. Damsan JSC | Duc Thanh vs. An Phat Plastic | Duc Thanh vs. APG Securities Joint |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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