Correlation Between Damsan JSC and An Gia

Can any of the company-specific risk be diversified away by investing in both Damsan JSC and An Gia 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 Damsan JSC and An Gia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Damsan JSC and An Gia Real, you can compare the effects of market volatilities on Damsan JSC and An Gia 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 Damsan JSC with a short position of An Gia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and An Gia.

Diversification Opportunities for Damsan JSC and An Gia

0.56

Correlation Coefficient

Damsan JSC  An Gia

Very weak diversification

The 3 months correlation between Damsan and AGG is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and An Gia Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Gia Real and Damsan JSC 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 Damsan JSC are associated (or correlated) with An Gia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Gia Real has no effect on the direction of Damsan JSC i.e., Damsan JSC and An Gia go up and down completely randomly.

Pair Corralation between Damsan JSC and An Gia

Assuming the 90 days trading horizon Damsan JSC is expected to generate 1.48 times more return on investment than An Gia. However, Damsan JSC is 1.48 times more volatile than An Gia Real. It trades about 0.1 of its potential returns per unit of risk. An Gia Real is currently generating about 0.11 per unit of risk. If you would invest  881,000  in Damsan JSC on December 29, 2024 and sell it today you would earn a total of  78,000  from holding Damsan JSC or generate 8.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Damsan JSC  vs.  An Gia Real

Damsan JSC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Damsan JSC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Damsan JSC may actually be approaching a critical reversion point that can send shares even higher in April 2025.

An Gia Real

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in An Gia Real are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, An Gia may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Damsan JSC and An Gia

The main advantage of trading using opposite Damsan JSC and An Gia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, An Gia 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 An Gia will offset losses from the drop in An Gia's long position.

The idea behind Damsan JSC and An Gia Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.