Correlation Between IDJ FINANCIAL and CEO Group
Can any of the company-specific risk be diversified away by investing in both IDJ FINANCIAL and CEO Group 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 IDJ FINANCIAL and CEO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDJ FINANCIAL and CEO Group JSC, you can compare the effects of market volatilities on IDJ FINANCIAL and CEO Group 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 IDJ FINANCIAL with a short position of CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDJ FINANCIAL and CEO Group.
Diversification Opportunities for IDJ FINANCIAL and CEO Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IDJ and CEO is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding IDJ FINANCIAL and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group JSC and IDJ FINANCIAL 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 IDJ FINANCIAL are associated (or correlated) with CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of IDJ FINANCIAL i.e., IDJ FINANCIAL and CEO Group go up and down completely randomly.
Pair Corralation between IDJ FINANCIAL and CEO Group
Assuming the 90 days trading horizon IDJ FINANCIAL is expected to generate 0.86 times more return on investment than CEO Group. However, IDJ FINANCIAL is 1.16 times less risky than CEO Group. It trades about -0.24 of its potential returns per unit of risk. CEO Group JSC is currently generating about -0.49 per unit of risk. If you would invest 610,000 in IDJ FINANCIAL on October 12, 2024 and sell it today you would lose (40,000) from holding IDJ FINANCIAL or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDJ FINANCIAL vs. CEO Group JSC
Performance |
| Timeline |
| IDJ FINANCIAL |
| CEO Group JSC |
IDJ FINANCIAL and CEO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDJ FINANCIAL and CEO Group
The main advantage of trading using opposite IDJ FINANCIAL and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDJ FINANCIAL position performs unexpectedly, CEO Group 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 CEO Group will offset losses from the drop in CEO Group's long position.| IDJ FINANCIAL vs. BIDV Insurance Corp | IDJ FINANCIAL vs. Asia Commercial Bank | IDJ FINANCIAL vs. PVI Reinsurance Corp | IDJ FINANCIAL vs. Saigon Beer Alcohol |
| CEO Group vs. FIT INVEST JSC | CEO Group vs. Damsan JSC | CEO Group vs. An Phat Plastic | CEO Group 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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