Correlation Between Ha Noi and IDJ FINANCIAL

Can any of the company-specific risk be diversified away by investing in both Ha Noi and IDJ FINANCIAL 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 Ha Noi and IDJ FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ha Noi Education and IDJ FINANCIAL, you can compare the effects of market volatilities on Ha Noi and IDJ FINANCIAL 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 Ha Noi with a short position of IDJ FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ha Noi and IDJ FINANCIAL.

Diversification Opportunities for Ha Noi and IDJ FINANCIAL

0.33

Correlation Coefficient

Ha Noi  IDJ FINANCIAL

Weak diversification

The 3 months correlation between EID and IDJ is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ha Noi Education and IDJ FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDJ FINANCIAL and Ha Noi 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 Ha Noi Education are associated (or correlated) with IDJ FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDJ FINANCIAL has no effect on the direction of Ha Noi i.e., Ha Noi and IDJ FINANCIAL go up and down completely randomly.

Pair Corralation between Ha Noi and IDJ FINANCIAL

Assuming the 90 days trading horizon Ha Noi Education is expected to generate 0.44 times more return on investment than IDJ FINANCIAL. However, Ha Noi Education is 2.26 times less risky than IDJ FINANCIAL. It trades about 0.06 of its potential returns per unit of risk. IDJ FINANCIAL is currently generating about 0.0 per unit of risk. If you would invest  1,752,405  in Ha Noi Education on September 21, 2024 and sell it today you would earn a total of  877,595  from holding Ha Noi Education or generate 50.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.52%
Values	Daily Returns

Ha Noi Education  vs.  IDJ FINANCIAL

Ha Noi Education

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ha Noi Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

IDJ FINANCIAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IDJ FINANCIAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward-looking indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Ha Noi and IDJ FINANCIAL

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

The idea behind Ha Noi Education and IDJ FINANCIAL 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.