Correlation Between TDG Global and Damsan JSC
Can any of the company-specific risk be diversified away by investing in both TDG Global and Damsan JSC 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 TDG Global and Damsan JSC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TDG Global Investment and Damsan JSC, you can compare the effects of market volatilities on TDG Global and Damsan JSC 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 TDG Global with a short position of Damsan JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of TDG Global and Damsan JSC.
Diversification Opportunities for TDG Global and Damsan JSC
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TDG and Damsan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding TDG Global Investment and Damsan JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damsan JSC and TDG Global 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 TDG Global Investment are associated (or correlated) with Damsan JSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Damsan JSC has no effect on the direction of TDG Global i.e., TDG Global and Damsan JSC go up and down completely randomly.
Pair Corralation between TDG Global and Damsan JSC
Assuming the 90 days trading horizon TDG Global Investment is expected to generate 1.28 times more return on investment than Damsan JSC. However, TDG Global is 1.28 times more volatile than Damsan JSC. It trades about 0.02 of its potential returns per unit of risk. Damsan JSC is currently generating about -0.12 per unit of risk. If you would invest 350,833 in TDG Global Investment on September 2, 2024 and sell it today you would earn a total of 9,167 from holding TDG Global Investment or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TDG Global Investment vs. Damsan JSC
Performance |
| Timeline |
| TDG Global Investment |
| Damsan JSC |
TDG Global and Damsan JSC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TDG Global and Damsan JSC
The main advantage of trading using opposite TDG Global and Damsan JSC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TDG Global position performs unexpectedly, Damsan JSC 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 Damsan JSC will offset losses from the drop in Damsan JSC's long position.| TDG Global vs. FIT INVEST JSC | TDG Global vs. Damsan JSC | TDG Global vs. An Phat Plastic | TDG Global vs. Alphanam ME |
| Damsan JSC vs. FIT INVEST JSC | Damsan JSC vs. An Phat Plastic | Damsan JSC vs. Alphanam ME | Damsan JSC vs. APG Securities Joint |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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