Correlation Between Thanh Dat and Tin Nghia
Can any of the company-specific risk be diversified away by investing in both Thanh Dat and Tin Nghia 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 Tin Nghia 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 Tin Nghia Industrial, you can compare the effects of market volatilities on Thanh Dat and Tin Nghia 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 Tin Nghia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and Tin Nghia.
Diversification Opportunities for Thanh Dat and Tin Nghia
Good diversification
The 3 months correlation between Thanh and Tin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment and Tin Nghia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tin Nghia Industrial 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 Tin Nghia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tin Nghia Industrial has no effect on the direction of Thanh Dat i.e., Thanh Dat and Tin Nghia go up and down completely randomly.
Pair Corralation between Thanh Dat and Tin Nghia
Assuming the 90 days trading horizon Thanh Dat Investment is expected to generate 1.43 times more return on investment than Tin Nghia. However, Thanh Dat is 1.43 times more volatile than Tin Nghia Industrial. It trades about 0.04 of its potential returns per unit of risk. Tin Nghia Industrial is currently generating about 0.0 per unit of risk. If you would invest 2,147,448 in Thanh Dat Investment on September 4, 2024 and sell it today you would earn a total of 522,552 from holding Thanh Dat Investment or generate 24.33% 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. Tin Nghia Industrial
Performance |
| Timeline |
| Thanh Dat Investment |
| Tin Nghia Industrial |
Thanh Dat and Tin Nghia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanh Dat and Tin Nghia
The main advantage of trading using opposite Thanh Dat and Tin Nghia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat position performs unexpectedly, Tin Nghia 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 Tin Nghia will offset losses from the drop in Tin Nghia's long position.| Thanh Dat vs. FIT INVEST JSC | Thanh Dat vs. Damsan JSC | Thanh Dat vs. An Phat Plastic | Thanh Dat vs. Alphanam ME |
| Tin Nghia vs. Saigon Viendong Technology | Tin Nghia vs. Pacific Petroleum Transportation | Tin Nghia vs. Industrial Urban Development | Tin Nghia vs. Investment and Industrial |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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