Correlation Between Din Capital and Investment
Can any of the company-specific risk be diversified away by investing in both Din Capital and Investment 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 Din Capital and Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Din Capital Investment and Investment and Industrial, you can compare the effects of market volatilities on Din Capital and Investment 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 Din Capital with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Din Capital and Investment.
Diversification Opportunities for Din Capital and Investment
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Din and Investment is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Din Capital Investment and Investment and Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment and Industrial and Din Capital 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 Din Capital Investment are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment and Industrial has no effect on the direction of Din Capital i.e., Din Capital and Investment go up and down completely randomly.
Pair Corralation between Din Capital and Investment
Assuming the 90 days trading horizon Din Capital is expected to generate 6.07 times less return on investment than Investment. But when comparing it to its historical volatility, Din Capital Investment is 1.05 times less risky than Investment. It trades about 0.05 of its potential returns per unit of risk. Investment and Industrial is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 6,700,000 in Investment and Industrial on October 12, 2024 and sell it today you would earn a total of 450,000 from holding Investment and Industrial or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Din Capital Investment vs. Investment and Industrial
Performance |
| Timeline |
| Din Capital Investment |
| Investment and Industrial |
Din Capital and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Din Capital and Investment
The main advantage of trading using opposite Din Capital and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Din Capital position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Din Capital vs. Thanh Dat Investment | Din Capital vs. Nafoods Group JSC | Din Capital vs. Hanoi Beer Alcohol | Din Capital vs. Elcom Technology Communications |
| Investment vs. PetroVietnam Transportation Corp | Investment vs. Elcom Technology Communications | Investment vs. Ducgiang Chemicals Detergent | Investment vs. Pacific Petroleum Transportation |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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