Correlation Between Din Capital and Saigon Viendong
Can any of the company-specific risk be diversified away by investing in both Din Capital and Saigon Viendong 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 Saigon Viendong 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 Saigon Viendong Technology, you can compare the effects of market volatilities on Din Capital and Saigon Viendong 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 Saigon Viendong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Din Capital and Saigon Viendong.
Diversification Opportunities for Din Capital and Saigon Viendong
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Din and Saigon is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Din Capital Investment and Saigon Viendong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Viendong Tech 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 Saigon Viendong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Viendong Tech has no effect on the direction of Din Capital i.e., Din Capital and Saigon Viendong go up and down completely randomly.
Pair Corralation between Din Capital and Saigon Viendong
Assuming the 90 days trading horizon Din Capital Investment is expected to generate 0.8 times more return on investment than Saigon Viendong. However, Din Capital Investment is 1.25 times less risky than Saigon Viendong. It trades about 0.09 of its potential returns per unit of risk. Saigon Viendong Technology is currently generating about -0.11 per unit of risk. If you would invest 940,000 in Din Capital Investment on September 2, 2024 and sell it today you would earn a total of 80,000 from holding Din Capital Investment or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Din Capital Investment vs. Saigon Viendong Technology
Performance |
| Timeline |
| Din Capital Investment |
| Saigon Viendong Tech |
Din Capital and Saigon Viendong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Din Capital and Saigon Viendong
The main advantage of trading using opposite Din Capital and Saigon Viendong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Din Capital position performs unexpectedly, Saigon Viendong 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 Saigon Viendong will offset losses from the drop in Saigon Viendong's long position.| Din Capital vs. FIT INVEST JSC | Din Capital vs. Damsan JSC | Din Capital vs. An Phat Plastic | Din Capital vs. Alphanam ME |
| Saigon Viendong vs. FIT INVEST JSC | Saigon Viendong vs. Damsan JSC | Saigon Viendong vs. An Phat Plastic | Saigon Viendong 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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