Correlation Between Ducgiang Chemicals and Damsan JSC
Can any of the company-specific risk be diversified away by investing in both Ducgiang Chemicals 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 Ducgiang Chemicals and Damsan JSC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ducgiang Chemicals Detergent and Damsan JSC, you can compare the effects of market volatilities on Ducgiang Chemicals 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 Ducgiang Chemicals with a short position of Damsan JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ducgiang Chemicals and Damsan JSC.
Diversification Opportunities for Ducgiang Chemicals and Damsan JSC
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ducgiang and Damsan is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ducgiang Chemicals Detergent and Damsan JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damsan JSC and Ducgiang Chemicals 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 Ducgiang Chemicals Detergent 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 Ducgiang Chemicals i.e., Ducgiang Chemicals and Damsan JSC go up and down completely randomly.
Pair Corralation between Ducgiang Chemicals and Damsan JSC
Assuming the 90 days trading horizon Ducgiang Chemicals Detergent is expected to generate 0.79 times more return on investment than Damsan JSC. However, Ducgiang Chemicals Detergent is 1.27 times less risky than Damsan JSC. It trades about -0.01 of its potential returns per unit of risk. Damsan JSC is currently generating about -0.1 per unit of risk. If you would invest 11,050,000 in Ducgiang Chemicals Detergent on October 24, 2024 and sell it today you would lose (150,000) from holding Ducgiang Chemicals Detergent or give up 1.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ducgiang Chemicals Detergent vs. Damsan JSC
Performance |
Timeline |
Ducgiang Chemicals |
Damsan JSC |
Ducgiang Chemicals and Damsan JSC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ducgiang Chemicals and Damsan JSC
The main advantage of trading using opposite Ducgiang Chemicals and Damsan JSC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ducgiang Chemicals 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.Ducgiang Chemicals vs. FIT INVEST JSC | Ducgiang Chemicals vs. Damsan JSC | Ducgiang Chemicals vs. An Phat Plastic | Ducgiang Chemicals vs. APG Securities Joint |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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