Correlation Between Duong Hieu and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both Duong Hieu 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 Duong Hieu and Thanh Dat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duong Hieu Trading and Thanh Dat Investment, you can compare the effects of market volatilities on Duong Hieu 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 Duong Hieu with a short position of Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duong Hieu and Thanh Dat.
Diversification Opportunities for Duong Hieu and Thanh Dat
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Duong and Thanh is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Duong Hieu Trading 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 Duong Hieu 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 Duong Hieu Trading 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 Duong Hieu i.e., Duong Hieu and Thanh Dat go up and down completely randomly.
Pair Corralation between Duong Hieu and Thanh Dat
Assuming the 90 days trading horizon Duong Hieu Trading is expected to under-perform the Thanh Dat. In addition to that, Duong Hieu is 1.34 times more volatile than Thanh Dat Investment. It trades about -0.15 of its total potential returns per unit of risk. Thanh Dat Investment is currently generating about 0.09 per unit of volatility. If you would invest 2,470,000 in Thanh Dat Investment on September 3, 2024 and sell it today you would earn a total of 180,000 from holding Thanh Dat Investment or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Duong Hieu Trading vs. Thanh Dat Investment
Performance |
| Timeline |
| Duong Hieu Trading |
| Thanh Dat Investment |
Duong Hieu and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duong Hieu and Thanh Dat
The main advantage of trading using opposite Duong Hieu and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duong Hieu 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.| Duong Hieu vs. FIT INVEST JSC | Duong Hieu vs. Damsan JSC | Duong Hieu vs. An Phat Plastic | Duong Hieu vs. Alphanam ME |
| Thanh Dat vs. FIT INVEST JSC | Thanh Dat vs. Damsan JSC | Thanh Dat vs. An Phat Plastic | Thanh Dat 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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