Correlation Between Thanh Dat and LDG Investment
Can any of the company-specific risk be diversified away by investing in both Thanh Dat and LDG Investment 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 LDG Investment 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 LDG Investment JSC, you can compare the effects of market volatilities on Thanh Dat and LDG Investment 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 LDG Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and LDG Investment.
Diversification Opportunities for Thanh Dat and LDG Investment
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thanh and LDG is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment and LDG Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LDG Investment 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 LDG Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LDG Investment JSC has no effect on the direction of Thanh Dat i.e., Thanh Dat and LDG Investment go up and down completely randomly.
Pair Corralation between Thanh Dat and LDG Investment
Assuming the 90 days trading horizon Thanh Dat Investment is expected to generate 0.86 times more return on investment than LDG Investment. However, Thanh Dat Investment is 1.16 times less risky than LDG Investment. It trades about 0.03 of its potential returns per unit of risk. LDG Investment JSC is currently generating about 0.0 per unit of risk. If you would invest 2,570,000 in Thanh Dat Investment on September 2, 2024 and sell it today you would earn a total of 80,000 from holding Thanh Dat Investment or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Thanh Dat Investment vs. LDG Investment JSC
Performance |
| Timeline |
| Thanh Dat Investment |
| LDG Investment JSC |
Thanh Dat and LDG Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanh Dat and LDG Investment
The main advantage of trading using opposite Thanh Dat and LDG Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat position performs unexpectedly, LDG Investment 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 LDG Investment will offset losses from the drop in LDG Investment's long position.| Thanh Dat vs. Binhthuan Agriculture Services | Thanh Dat vs. Development Investment Construction | Thanh Dat vs. Elcom Technology Communications | Thanh Dat vs. Da Nang Construction |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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