Correlation Between Van Dien and Din Capital
Can any of the company-specific risk be diversified away by investing in both Van Dien and Din Capital 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 Din Capital 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 Din Capital Investment, you can compare the effects of market volatilities on Van Dien and Din Capital 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 Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Van Dien and Din Capital.
Diversification Opportunities for Van Dien and Din Capital
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Van and Din is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Van Dien Fused and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital Investment 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 Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of Van Dien i.e., Van Dien and Din Capital go up and down completely randomly.
Pair Corralation between Van Dien and Din Capital
Assuming the 90 days trading horizon Van Dien Fused is expected to under-perform the Din Capital. In addition to that, Van Dien is 1.87 times more volatile than Din Capital Investment. It trades about -0.13 of its total potential returns per unit of risk. Din Capital Investment is currently generating about 0.03 per unit of volatility. If you would invest 1,010,000 in Din Capital Investment on September 14, 2024 and sell it today you would earn a total of 10,000 from holding Din Capital Investment or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Van Dien Fused vs. Din Capital Investment
Performance |
| Timeline |
| Van Dien Fused |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Din Capital Investment |
Van Dien and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Van Dien and Din Capital
The main advantage of trading using opposite Van Dien and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Van Dien position performs unexpectedly, Din Capital 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 Din Capital will offset losses from the drop in Din Capital's long position.| Van Dien vs. Elcom Technology Communications | Van Dien vs. Materials Petroleum JSC | Van Dien vs. Danang Rubber JSC | Van Dien vs. FPT Digital Retail |
| Din Capital vs. FIT INVEST JSC | Din Capital vs. Damsan JSC | Din Capital vs. An Phat Plastic | Din Capital 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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