Correlation Between KSD and Duong Hieu
Can any of the company-specific risk be diversified away by investing in both KSD and Duong Hieu 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 KSD and Duong Hieu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KSD and Duong Hieu Trading, you can compare the effects of market volatilities on KSD and Duong Hieu 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 KSD with a short position of Duong Hieu. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSD and Duong Hieu.
Diversification Opportunities for KSD and Duong Hieu
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between KSD and Duong is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding KSD and Duong Hieu Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duong Hieu Trading and KSD 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 KSD are associated (or correlated) with Duong Hieu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duong Hieu Trading has no effect on the direction of KSD i.e., KSD and Duong Hieu go up and down completely randomly.
Pair Corralation between KSD and Duong Hieu
Assuming the 90 days trading horizon KSD is expected to generate 1.23 times more return on investment than Duong Hieu. However, KSD is 1.23 times more volatile than Duong Hieu Trading. It trades about 0.13 of its potential returns per unit of risk. Duong Hieu Trading is currently generating about -0.08 per unit of risk. If you would invest 470,000 in KSD on September 12, 2024 and sell it today you would earn a total of 30,000 from holding KSD or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.17% |
| Values | Daily Returns |
KSD vs. Duong Hieu Trading
Performance |
| Timeline |
| KSD |
| Duong Hieu Trading |
KSD and Duong Hieu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KSD and Duong Hieu
The main advantage of trading using opposite KSD and Duong Hieu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSD position performs unexpectedly, Duong Hieu 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 Duong Hieu will offset losses from the drop in Duong Hieu's long position.| KSD vs. Pha Le Plastics | KSD vs. DOMESCO Medical Import | KSD vs. BIDV Insurance Corp | KSD vs. Dong A Hotel |
| Duong Hieu vs. FIT INVEST JSC | Duong Hieu vs. Damsan JSC | Duong Hieu vs. An Phat Plastic | Duong Hieu vs. Alphanam ME |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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