Correlation Between Bao Ngoc and Tien Giang
Can any of the company-specific risk be diversified away by investing in both Bao Ngoc and Tien Giang 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 Bao Ngoc and Tien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bao Ngoc Investment and Tien Giang Investment, you can compare the effects of market volatilities on Bao Ngoc and Tien Giang 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 Bao Ngoc with a short position of Tien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bao Ngoc and Tien Giang.
Diversification Opportunities for Bao Ngoc and Tien Giang
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bao and Tien is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bao Ngoc Investment and Tien Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Giang Investment and Bao Ngoc 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 Bao Ngoc Investment are associated (or correlated) with Tien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Giang Investment has no effect on the direction of Bao Ngoc i.e., Bao Ngoc and Tien Giang go up and down completely randomly.
Pair Corralation between Bao Ngoc and Tien Giang
Assuming the 90 days trading horizon Bao Ngoc is expected to generate 1.14 times less return on investment than Tien Giang. In addition to that, Bao Ngoc is 1.55 times more volatile than Tien Giang Investment. It trades about 0.04 of its total potential returns per unit of risk. Tien Giang Investment is currently generating about 0.07 per unit of volatility. If you would invest 3,778,947 in Tien Giang Investment on August 28, 2024 and sell it today you would earn a total of 601,053 from holding Tien Giang Investment or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bao Ngoc Investment vs. Tien Giang Investment
Performance |
| Timeline |
| Bao Ngoc Investment |
| Tien Giang Investment |
Bao Ngoc and Tien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bao Ngoc and Tien Giang
The main advantage of trading using opposite Bao Ngoc and Tien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bao Ngoc position performs unexpectedly, Tien Giang 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 Tien Giang will offset losses from the drop in Tien Giang's long position.| Bao Ngoc vs. FIT INVEST JSC | Bao Ngoc vs. Damsan JSC | Bao Ngoc vs. An Phat Plastic | Bao Ngoc vs. APG Securities Joint |
| Tien Giang vs. Danang Rubber JSC | Tien Giang vs. Phuoc Hoa Rubber | Tien Giang vs. Southern Rubber Industry | Tien Giang vs. Tay Ninh Rubber |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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