Correlation Between Newretail and Tang Eng
Can any of the company-specific risk be diversified away by investing in both Newretail and Tang Eng 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 Newretail and Tang Eng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newretail Co and Tang Eng Iron, you can compare the effects of market volatilities on Newretail and Tang Eng 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 Newretail with a short position of Tang Eng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newretail and Tang Eng.
Diversification Opportunities for Newretail and Tang Eng
Very good diversification
The 3 months correlation between Newretail and Tang is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Newretail Co and Tang Eng Iron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tang Eng Iron and Newretail 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 Newretail Co are associated (or correlated) with Tang Eng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tang Eng Iron has no effect on the direction of Newretail i.e., Newretail and Tang Eng go up and down completely randomly.
Pair Corralation between Newretail and Tang Eng
Assuming the 90 days trading horizon Newretail Co is expected to generate 4.8 times more return on investment than Tang Eng. However, Newretail is 4.8 times more volatile than Tang Eng Iron. It trades about 0.02 of its potential returns per unit of risk. Tang Eng Iron is currently generating about 0.0 per unit of risk. If you would invest 2,200 in Newretail Co on October 28, 2024 and sell it today you would earn a total of 120.00 from holding Newretail Co or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newretail Co vs. Tang Eng Iron
Performance |
| Timeline |
| Newretail |
| Tang Eng Iron |
Newretail and Tang Eng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newretail and Tang Eng
The main advantage of trading using opposite Newretail and Tang Eng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newretail position performs unexpectedly, Tang Eng 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 Tang Eng will offset losses from the drop in Tang Eng's long position.| Newretail vs. Compal Electronics | Newretail vs. C Media Electronics | Newretail vs. Posiflex Technology | Newretail vs. ANJI Technology Co |
| Tang Eng vs. CHC Healthcare Group | Tang Eng vs. Asia Metal Industries | Tang Eng vs. Yi Jinn Industrial | Tang Eng vs. Onyx Healthcare |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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