Correlation Between Atesco Industrial and Tng Investment
Can any of the company-specific risk be diversified away by investing in both Atesco Industrial and Tng 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 Atesco Industrial and Tng Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atesco Industrial Cartering and Tng Investment And, you can compare the effects of market volatilities on Atesco Industrial and Tng 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 Atesco Industrial with a short position of Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atesco Industrial and Tng Investment.
Diversification Opportunities for Atesco Industrial and Tng Investment
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atesco and Tng is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Atesco Industrial Cartering and Tng Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tng Investment And and Atesco Industrial 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 Atesco Industrial Cartering are associated (or correlated) with Tng Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tng Investment And has no effect on the direction of Atesco Industrial i.e., Atesco Industrial and Tng Investment go up and down completely randomly.
Pair Corralation between Atesco Industrial and Tng Investment
Assuming the 90 days trading horizon Atesco Industrial is expected to generate 1.6 times less return on investment than Tng Investment. In addition to that, Atesco Industrial is 2.65 times more volatile than Tng Investment And. It trades about 0.02 of its total potential returns per unit of risk. Tng Investment And is currently generating about 0.07 per unit of volatility. If you would invest 1,165,288 in Tng Investment And on August 25, 2024 and sell it today you would earn a total of 1,284,712 from holding Tng Investment And or generate 110.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 37.4% |
| Values | Daily Returns |
Atesco Industrial Cartering vs. Tng Investment And
Performance |
| Timeline |
| Atesco Industrial |
| Tng Investment And |
Atesco Industrial and Tng Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atesco Industrial and Tng Investment
The main advantage of trading using opposite Atesco Industrial and Tng Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atesco Industrial position performs unexpectedly, Tng 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 Tng Investment will offset losses from the drop in Tng Investment's long position.| Atesco Industrial vs. Idico JSC | Atesco Industrial vs. Hochiminh City Metal | Atesco Industrial vs. Danang Education Investment | Atesco Industrial vs. South Basic Chemicals |
| Tng Investment vs. FIT INVEST JSC | Tng Investment vs. Damsan JSC | Tng Investment vs. An Phat Plastic | Tng Investment vs. APG Securities Joint |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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