Correlation Between Thanh Dat and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both Thanh Dat and Mekong Fisheries 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 Thanh Dat and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thanh Dat Investment and Mekong Fisheries JSC, you can compare the effects of market volatilities on Thanh Dat and Mekong Fisheries 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 Thanh Dat with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and Mekong Fisheries.
Diversification Opportunities for Thanh Dat and Mekong Fisheries
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thanh and Mekong is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and Thanh Dat 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 Thanh Dat Investment are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of Thanh Dat i.e., Thanh Dat and Mekong Fisheries go up and down completely randomly.
Pair Corralation between Thanh Dat and Mekong Fisheries
Assuming the 90 days trading horizon Thanh Dat Investment is expected to under-perform the Mekong Fisheries. But the stock apears to be less risky and, when comparing its historical volatility, Thanh Dat Investment is 1.34 times less risky than Mekong Fisheries. The stock trades about -0.26 of its potential returns per unit of risk. The Mekong Fisheries JSC is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 730,000 in Mekong Fisheries JSC on October 30, 2024 and sell it today you would lose (23,000) from holding Mekong Fisheries JSC or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Thanh Dat Investment vs. Mekong Fisheries JSC
Performance |
| Timeline |
| Thanh Dat Investment |
| Mekong Fisheries JSC |
Thanh Dat and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanh Dat and Mekong Fisheries
The main advantage of trading using opposite Thanh Dat and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.| Thanh Dat vs. Tay Ninh Rubber | Thanh Dat vs. Sao Ta Foods | Thanh Dat vs. Pha Lai Thermal | Thanh Dat vs. Pha Le Plastics |
| Mekong Fisheries vs. Japan Vietnam Medical | Mekong Fisheries vs. Cotec Construction JSC | Mekong Fisheries vs. DIC Holdings Construction | Mekong Fisheries vs. Viettel Construction JSC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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