Correlation Between IDJ FINANCIAL and Foreign Trade
Can any of the company-specific risk be diversified away by investing in both IDJ FINANCIAL and Foreign Trade 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 Foreign Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDJ FINANCIAL and Foreign Trade Development, you can compare the effects of market volatilities on IDJ FINANCIAL and Foreign Trade 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 Foreign Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDJ FINANCIAL and Foreign Trade.
Diversification Opportunities for IDJ FINANCIAL and Foreign Trade
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDJ and Foreign is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding IDJ FINANCIAL and Foreign Trade Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foreign Trade Development 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 Foreign Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foreign Trade Development has no effect on the direction of IDJ FINANCIAL i.e., IDJ FINANCIAL and Foreign Trade go up and down completely randomly.
Pair Corralation between IDJ FINANCIAL and Foreign Trade
If you would invest 1,600,000 in Foreign Trade Development on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Foreign Trade Development or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 36.36% |
| Values | Daily Returns |
IDJ FINANCIAL vs. Foreign Trade Development
Performance |
| Timeline |
| IDJ FINANCIAL |
| Foreign Trade Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
IDJ FINANCIAL and Foreign Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDJ FINANCIAL and Foreign Trade
The main advantage of trading using opposite IDJ FINANCIAL and Foreign Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDJ FINANCIAL position performs unexpectedly, Foreign Trade 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 Foreign Trade will offset losses from the drop in Foreign Trade's long position.| IDJ FINANCIAL vs. DIC Holdings Construction | IDJ FINANCIAL vs. Development Investment Construction | IDJ FINANCIAL vs. Tin Nghia Industrial | IDJ FINANCIAL vs. Techno Agricultural Supplying |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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