Correlation Between Thanh Dat and Long An
Can any of the company-specific risk be diversified away by investing in both Thanh Dat and Long An 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 Long An 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 Long An Food, you can compare the effects of market volatilities on Thanh Dat and Long An 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 Long An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and Long An.
Diversification Opportunities for Thanh Dat and Long An
Very weak diversification
The 3 months correlation between Thanh and Long is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment and Long An Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long An Food 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 Long An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long An Food has no effect on the direction of Thanh Dat i.e., Thanh Dat and Long An go up and down completely randomly.
Pair Corralation between Thanh Dat and Long An
Assuming the 90 days trading horizon Thanh Dat Investment is expected to under-perform the Long An. In addition to that, Thanh Dat is 1.29 times more volatile than Long An Food. It trades about -0.13 of its total potential returns per unit of risk. Long An Food is currently generating about 0.14 per unit of volatility. If you would invest 1,760,000 in Long An Food on October 11, 2024 and sell it today you would earn a total of 60,000 from holding Long An Food or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Thanh Dat Investment vs. Long An Food
Performance |
| Timeline |
| Thanh Dat Investment |
| Long An Food |
Thanh Dat and Long An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanh Dat and Long An
The main advantage of trading using opposite Thanh Dat and Long An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat position performs unexpectedly, Long An 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 Long An will offset losses from the drop in Long An's long position.| Thanh Dat vs. Post and Telecommunications | Thanh Dat vs. Hochiminh City Metal | Thanh Dat vs. POST TELECOMMU | Thanh Dat vs. Elcom Technology Communications |
| Long An vs. SMC Investment Trading | Long An vs. Pha Lai Thermal | Long An vs. Thanh Dat Investment | Long An vs. Viet Thanh Plastic |
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 Stocks Directory module to find actively traded stocks across global markets.
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