Correlation Between Taseco Air and LDG Investment
Can any of the company-specific risk be diversified away by investing in both Taseco Air and LDG Investment 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 Taseco Air and LDG Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taseco Air Services and LDG Investment JSC, you can compare the effects of market volatilities on Taseco Air and LDG Investment 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 Taseco Air with a short position of LDG Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taseco Air and LDG Investment.
Diversification Opportunities for Taseco Air and LDG Investment
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Taseco and LDG is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Taseco Air Services and LDG Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LDG Investment JSC and Taseco Air 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 Taseco Air Services are associated (or correlated) with LDG Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LDG Investment JSC has no effect on the direction of Taseco Air i.e., Taseco Air and LDG Investment go up and down completely randomly.
Pair Corralation between Taseco Air and LDG Investment
Assuming the 90 days trading horizon Taseco Air Services is expected to under-perform the LDG Investment. But the stock apears to be less risky and, when comparing its historical volatility, Taseco Air Services is 2.48 times less risky than LDG Investment. The stock trades about -0.06 of its potential returns per unit of risk. The LDG Investment JSC is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 186,000 in LDG Investment JSC on September 2, 2024 and sell it today you would lose (2,000) from holding LDG Investment JSC or give up 1.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Taseco Air Services vs. LDG Investment JSC
Performance |
Timeline |
Taseco Air Services |
LDG Investment JSC |
Taseco Air and LDG Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Taseco Air and LDG Investment
The main advantage of trading using opposite Taseco Air and LDG Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taseco Air position performs unexpectedly, LDG Investment 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 LDG Investment will offset losses from the drop in LDG Investment's long position.Taseco Air vs. FIT INVEST JSC | Taseco Air vs. Damsan JSC | Taseco Air vs. An Phat Plastic | Taseco Air vs. Alphanam ME |
LDG Investment vs. Global Electrical Technology | LDG Investment vs. Everland Investment JSC | LDG Investment vs. Fecon Mining JSC | LDG Investment vs. Hanoi Beer Trading |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |