Correlation Between Din Capital and Foreign Trade
Can any of the company-specific risk be diversified away by investing in both Din Capital 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 Din Capital and Foreign Trade 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 Foreign Trade Development, you can compare the effects of market volatilities on Din Capital 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 Din Capital with a short position of Foreign Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Din Capital and Foreign Trade.
Diversification Opportunities for Din Capital and Foreign Trade
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Din and Foreign is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Din Capital Investment 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 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 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 Din Capital i.e., Din Capital and Foreign Trade go up and down completely randomly.
Pair Corralation between Din Capital and Foreign Trade
Assuming the 90 days trading horizon Din Capital Investment is expected to generate 0.79 times more return on investment than Foreign Trade. However, Din Capital Investment is 1.27 times less risky than Foreign Trade. It trades about -0.17 of its potential returns per unit of risk. Foreign Trade Development is currently generating about -0.3 per unit of risk. If you would invest 1,020,000 in Din Capital Investment on November 29, 2024 and sell it today you would lose (50,000) from holding Din Capital Investment or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.11% |
| Values | Daily Returns |
Din Capital Investment vs. Foreign Trade Development
Performance |
| Timeline |
| Din Capital Investment |
| Foreign Trade Development |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Din Capital and Foreign Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Din Capital and Foreign Trade
The main advantage of trading using opposite Din Capital and Foreign Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Din Capital 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.| Din Capital vs. Thong Nhat Rubber | Din Capital vs. Dong Nai Plastic | Din Capital vs. Picomat Plastic JSC | Din Capital vs. Hai An Transport |
| Foreign Trade vs. Dong Nai Plastic | Foreign Trade vs. Sao Vang Rubber | Foreign Trade vs. Educational Book In | Foreign Trade vs. Phuoc Hoa Rubber |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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