Correlation Between IDJ FINANCIAL and Post
Can any of the company-specific risk be diversified away by investing in both IDJ FINANCIAL and Post 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 Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDJ FINANCIAL and Post and Telecommunications, you can compare the effects of market volatilities on IDJ FINANCIAL and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDJ FINANCIAL and Post.
Diversification Opportunities for IDJ FINANCIAL and Post
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IDJ and Post is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding IDJ FINANCIAL and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of IDJ FINANCIAL i.e., IDJ FINANCIAL and Post go up and down completely randomly.
Pair Corralation between IDJ FINANCIAL and Post
Assuming the 90 days trading horizon IDJ FINANCIAL is expected to generate 0.61 times more return on investment than Post. However, IDJ FINANCIAL is 1.64 times less risky than Post. It trades about -0.08 of its potential returns per unit of risk. Post and Telecommunications is currently generating about -0.06 per unit of risk. If you would invest 620,000 in IDJ FINANCIAL on August 31, 2024 and sell it today you would lose (20,000) from holding IDJ FINANCIAL or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDJ FINANCIAL vs. Post and Telecommunications
Performance |
| Timeline |
| IDJ FINANCIAL |
| Post and Telecommuni |
IDJ FINANCIAL and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDJ FINANCIAL and Post
The main advantage of trading using opposite IDJ FINANCIAL and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDJ FINANCIAL position performs unexpectedly, Post 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 Post will offset losses from the drop in Post'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 |
| Post vs. MST Investment JSC | Post vs. Din Capital Investment | Post vs. Petrolimex Information Technology | Post vs. Vina2 Investment and |
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.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |