Correlation Between IDJ FINANCIAL and Hai An
Can any of the company-specific risk be diversified away by investing in both IDJ FINANCIAL and Hai An 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 Hai An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDJ FINANCIAL and Hai An Transport, you can compare the effects of market volatilities on IDJ FINANCIAL and Hai An 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 Hai An. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDJ FINANCIAL and Hai An.
Diversification Opportunities for IDJ FINANCIAL and Hai An
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IDJ and Hai is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding IDJ FINANCIAL and Hai An Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hai An Transport 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 Hai An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hai An Transport has no effect on the direction of IDJ FINANCIAL i.e., IDJ FINANCIAL and Hai An go up and down completely randomly.
Pair Corralation between IDJ FINANCIAL and Hai An
Assuming the 90 days trading horizon IDJ FINANCIAL is expected to under-perform the Hai An. In addition to that, IDJ FINANCIAL is 1.21 times more volatile than Hai An Transport. It trades about -0.08 of its total potential returns per unit of risk. Hai An Transport is currently generating about 0.16 per unit of volatility. If you would invest 4,110,000 in Hai An Transport on September 2, 2024 and sell it today you would earn a total of 695,000 from holding Hai An Transport or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
IDJ FINANCIAL vs. Hai An Transport
Performance |
| Timeline |
| IDJ FINANCIAL |
| Hai An Transport |
IDJ FINANCIAL and Hai An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDJ FINANCIAL and Hai An
The main advantage of trading using opposite IDJ FINANCIAL and Hai An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDJ FINANCIAL position performs unexpectedly, Hai An 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 Hai An will offset losses from the drop in Hai An's long position.| IDJ FINANCIAL vs. FIT INVEST JSC | IDJ FINANCIAL vs. Damsan JSC | IDJ FINANCIAL vs. An Phat Plastic | IDJ FINANCIAL vs. Alphanam ME |
| Hai An vs. FPT Digital Retail | Hai An vs. IDJ FINANCIAL | Hai An vs. CEO Group JSC | Hai An vs. Vincom Retail JSC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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