Correlation Between Kien Giang and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both Kien Giang and Thanh Dat 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 Kien Giang and Thanh Dat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kien Giang Construction and Thanh Dat Investment, you can compare the effects of market volatilities on Kien Giang and Thanh Dat 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 Kien Giang with a short position of Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kien Giang and Thanh Dat.
Diversification Opportunities for Kien Giang and Thanh Dat
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kien and Thanh is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kien Giang Construction and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat Investment and Kien Giang 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 Kien Giang Construction are associated (or correlated) with Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of Kien Giang i.e., Kien Giang and Thanh Dat go up and down completely randomly.
Pair Corralation between Kien Giang and Thanh Dat
Assuming the 90 days trading horizon Kien Giang Construction is expected to generate 0.68 times more return on investment than Thanh Dat. However, Kien Giang Construction is 1.48 times less risky than Thanh Dat. It trades about -0.1 of its potential returns per unit of risk. Thanh Dat Investment is currently generating about -0.15 per unit of risk. If you would invest 2,280,000 in Kien Giang Construction on October 11, 2024 and sell it today you would lose (60,000) from holding Kien Giang Construction or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kien Giang Construction vs. Thanh Dat Investment
Performance |
| Timeline |
| Kien Giang Construction |
| Thanh Dat Investment |
Kien Giang and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kien Giang and Thanh Dat
The main advantage of trading using opposite Kien Giang and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kien Giang position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's long position.| Kien Giang vs. Dinhvu Port Investment | Kien Giang vs. SMC Investment Trading | Kien Giang vs. South Basic Chemicals | Kien Giang vs. HUD1 Investment and |
| Thanh Dat vs. Kien Giang Construction | Thanh Dat vs. BIDV Insurance Corp | Thanh Dat vs. Vietnam National Reinsurance | Thanh Dat vs. Development Investment Construction |
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.
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