Correlation Between Damsan JSC and Japan Vietnam
Can any of the company-specific risk be diversified away by investing in both Damsan JSC and Japan Vietnam 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 Japan Vietnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damsan JSC and Japan Vietnam Medical, you can compare the effects of market volatilities on Damsan JSC and Japan Vietnam 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 Japan Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damsan JSC and Japan Vietnam.
Diversification Opportunities for Damsan JSC and Japan Vietnam
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Damsan and Japan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Damsan JSC and Japan Vietnam Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Vietnam Medical 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 Japan Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Vietnam Medical has no effect on the direction of Damsan JSC i.e., Damsan JSC and Japan Vietnam go up and down completely randomly.
Pair Corralation between Damsan JSC and Japan Vietnam
Assuming the 90 days trading horizon Damsan JSC is expected to generate 3.97 times less return on investment than Japan Vietnam. But when comparing it to its historical volatility, Damsan JSC is 1.69 times less risky than Japan Vietnam. It trades about 0.1 of its potential returns per unit of risk. Japan Vietnam Medical is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 378,000 in Japan Vietnam Medical on December 28, 2024 and sell it today you would earn a total of 152,000 from holding Japan Vietnam Medical or generate 40.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.31% |
Values | Daily Returns |
Damsan JSC vs. Japan Vietnam Medical
Performance |
Timeline |
Damsan JSC |
Japan Vietnam Medical |
Damsan JSC and Japan Vietnam Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Damsan JSC and Japan Vietnam
The main advantage of trading using opposite Damsan JSC and Japan Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damsan JSC position performs unexpectedly, Japan Vietnam 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 Japan Vietnam will offset losses from the drop in Japan Vietnam's long position.Damsan JSC vs. Truong Thanh Furniture | Damsan JSC vs. Hochiminh City Metal | Damsan JSC vs. Mobile World Investment | Damsan JSC vs. Binh Minh Plastics |
Japan Vietnam vs. FIT INVEST JSC | Japan Vietnam vs. Damsan JSC | Japan Vietnam vs. An Phat Plastic | Japan Vietnam 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |