Correlation Between Bich Chi and Tng Investment
Can any of the company-specific risk be diversified away by investing in both Bich Chi 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 Bich Chi and Tng Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bich Chi Food and Tng Investment And, you can compare the effects of market volatilities on Bich Chi 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 Bich Chi with a short position of Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bich Chi and Tng Investment.
Diversification Opportunities for Bich Chi and Tng Investment
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bich and Tng is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bich Chi Food 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 Bich Chi 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 Bich Chi Food 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 Bich Chi i.e., Bich Chi and Tng Investment go up and down completely randomly.
Pair Corralation between Bich Chi and Tng Investment
Assuming the 90 days trading horizon Bich Chi Food is expected to generate 2.0 times more return on investment than Tng Investment. However, Bich Chi is 2.0 times more volatile than Tng Investment And. It trades about 0.05 of its potential returns per unit of risk. Tng Investment And is currently generating about -0.03 per unit of risk. If you would invest 4,000,000 in Bich Chi Food on September 13, 2024 and sell it today you would earn a total of 50,000 from holding Bich Chi Food or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Bich Chi Food vs. Tng Investment And
Performance |
| Timeline |
| Bich Chi Food |
| Tng Investment And |
Bich Chi and Tng Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bich Chi and Tng Investment
The main advantage of trading using opposite Bich Chi and Tng Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bich Chi 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.| Bich Chi vs. FIT INVEST JSC | Bich Chi vs. Damsan JSC | Bich Chi vs. An Phat Plastic | Bich Chi vs. Alphanam ME |
| Tng Investment vs. FIT INVEST JSC | Tng Investment vs. Damsan JSC | Tng Investment vs. An Phat Plastic | Tng Investment vs. Alphanam ME |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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