Correlation Between Tingyi Holding and Vietnam Manufacturing
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and Vietnam Manufacturing 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 Tingyi Holding and Vietnam Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tingyi Holding Corp and Vietnam Manufacturing and, you can compare the effects of market volatilities on Tingyi Holding and Vietnam Manufacturing 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 Tingyi Holding with a short position of Vietnam Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and Vietnam Manufacturing.
Diversification Opportunities for Tingyi Holding and Vietnam Manufacturing
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tingyi and Vietnam is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and Vietnam Manufacturing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Manufacturing and and Tingyi Holding 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 Tingyi Holding Corp are associated (or correlated) with Vietnam Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Manufacturing and has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and Vietnam Manufacturing go up and down completely randomly.
Pair Corralation between Tingyi Holding and Vietnam Manufacturing
Assuming the 90 days trading horizon Tingyi Holding Corp is expected to generate 1.67 times more return on investment than Vietnam Manufacturing. However, Tingyi Holding is 1.67 times more volatile than Vietnam Manufacturing and. It trades about -0.02 of its potential returns per unit of risk. Vietnam Manufacturing and is currently generating about -0.05 per unit of risk. If you would invest 2,135 in Tingyi Holding Corp on September 3, 2024 and sell it today you would lose (80.00) from holding Tingyi Holding Corp or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tingyi Holding Corp vs. Vietnam Manufacturing and
Performance |
| Timeline |
| Tingyi Holding Corp |
| Vietnam Manufacturing and |
Tingyi Holding and Vietnam Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and Vietnam Manufacturing
The main advantage of trading using opposite Tingyi Holding and Vietnam Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, Vietnam Manufacturing 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 Vietnam Manufacturing will offset losses from the drop in Vietnam Manufacturing's long position.| Tingyi Holding vs. Uni President Enterprises Corp | Tingyi Holding vs. President Chain Store | Tingyi Holding vs. Formosa Chemicals Fibre | Tingyi Holding vs. Formosa Petrochemical Corp |
| Vietnam Manufacturing vs. Neo Neon Holdings Limited | Vietnam Manufacturing vs. Ju Teng International | Vietnam Manufacturing vs. Digital China Holdings | Vietnam Manufacturing vs. Tingyi Holding Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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