Correlation Between Southern Rubber and Tien Giang
Can any of the company-specific risk be diversified away by investing in both Southern Rubber 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 Southern Rubber and Tien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Rubber Industry and Tien Giang Investment, you can compare the effects of market volatilities on Southern Rubber 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 Southern Rubber with a short position of Tien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Rubber and Tien Giang.
Diversification Opportunities for Southern Rubber and Tien Giang
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Southern and Tien is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Southern Rubber Industry 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 Southern Rubber 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 Southern Rubber Industry 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 Southern Rubber i.e., Southern Rubber and Tien Giang go up and down completely randomly.
Pair Corralation between Southern Rubber and Tien Giang
Assuming the 90 days trading horizon Southern Rubber Industry is expected to generate 3.44 times more return on investment than Tien Giang. However, Southern Rubber is 3.44 times more volatile than Tien Giang Investment. It trades about 0.29 of its potential returns per unit of risk. Tien Giang Investment is currently generating about 0.0 per unit of risk. If you would invest 1,135,000 in Southern Rubber Industry on August 31, 2024 and sell it today you would earn a total of 235,000 from holding Southern Rubber Industry or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern Rubber Industry vs. Tien Giang Investment
Performance |
| Timeline |
| Southern Rubber Industry |
| Tien Giang Investment |
Southern Rubber and Tien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Rubber and Tien Giang
The main advantage of trading using opposite Southern Rubber and Tien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Rubber 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.| Southern Rubber vs. FIT INVEST JSC | Southern Rubber vs. Damsan JSC | Southern Rubber vs. An Phat Plastic | Southern Rubber vs. Alphanam ME |
| Tien Giang vs. FIT INVEST JSC | Tien Giang vs. Damsan JSC | Tien Giang vs. An Phat Plastic | Tien Giang 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |