Correlation Between Van Dien and CEO Group
Can any of the company-specific risk be diversified away by investing in both Van Dien and CEO Group 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 Van Dien and CEO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Van Dien Fused and CEO Group JSC, you can compare the effects of market volatilities on Van Dien and CEO Group 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 Van Dien with a short position of CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Van Dien and CEO Group.
Diversification Opportunities for Van Dien and CEO Group
Good diversification
The 3 months correlation between Van and CEO is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Van Dien Fused and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group JSC and Van Dien 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 Van Dien Fused are associated (or correlated) with CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of Van Dien i.e., Van Dien and CEO Group go up and down completely randomly.
Pair Corralation between Van Dien and CEO Group
Assuming the 90 days trading horizon Van Dien Fused is expected to generate 2.38 times more return on investment than CEO Group. However, Van Dien is 2.38 times more volatile than CEO Group JSC. It trades about 0.1 of its potential returns per unit of risk. CEO Group JSC is currently generating about -0.24 per unit of risk. If you would invest 1,335,000 in Van Dien Fused on October 24, 2024 and sell it today you would earn a total of 75,000 from holding Van Dien Fused or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Van Dien Fused vs. CEO Group JSC
Performance |
| Timeline |
| Van Dien Fused |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CEO Group JSC |
Van Dien and CEO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Van Dien and CEO Group
The main advantage of trading using opposite Van Dien and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Van Dien position performs unexpectedly, CEO Group 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 CEO Group will offset losses from the drop in CEO Group's long position.| Van Dien vs. South Basic Chemicals | Van Dien vs. FPT Corp | Van Dien vs. BIDV Insurance Corp | Van Dien vs. Japan Vietnam Medical |
| CEO Group vs. Telecoms Informatics JSC | CEO Group vs. Elcom Technology Communications | CEO Group vs. Pacific Petroleum Transportation | CEO Group vs. Da Nang Construction |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |