Correlation Between Thanh Dat and TDG Global
Can any of the company-specific risk be diversified away by investing in both Thanh Dat and TDG Global 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 TDG Global 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 TDG Global Investment, you can compare the effects of market volatilities on Thanh Dat and TDG Global 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 TDG Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and TDG Global.
Diversification Opportunities for Thanh Dat and TDG Global
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thanh and TDG is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment and TDG Global Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDG Global Investment 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 TDG Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDG Global Investment has no effect on the direction of Thanh Dat i.e., Thanh Dat and TDG Global go up and down completely randomly.
Pair Corralation between Thanh Dat and TDG Global
Assuming the 90 days trading horizon Thanh Dat Investment is expected to generate 1.34 times more return on investment than TDG Global. However, Thanh Dat is 1.34 times more volatile than TDG Global Investment. It trades about 0.07 of its potential returns per unit of risk. TDG Global Investment is currently generating about -0.27 per unit of risk. If you would invest 2,470,000 in Thanh Dat Investment on August 27, 2024 and sell it today you would earn a total of 90,000 from holding Thanh Dat Investment or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thanh Dat Investment vs. TDG Global Investment
Performance |
| Timeline |
| Thanh Dat Investment |
| TDG Global Investment |
Thanh Dat and TDG Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanh Dat and TDG Global
The main advantage of trading using opposite Thanh Dat and TDG Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat position performs unexpectedly, TDG Global 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 TDG Global will offset losses from the drop in TDG Global's long position.| Thanh Dat vs. FIT INVEST JSC | Thanh Dat vs. Damsan JSC | Thanh Dat vs. An Phat Plastic | Thanh Dat vs. APG Securities Joint |
| TDG Global vs. FIT INVEST JSC | TDG Global vs. Damsan JSC | TDG Global vs. An Phat Plastic | TDG Global vs. APG Securities Joint |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |