Correlation Between Thanh Dat and Tri Viet
Can any of the company-specific risk be diversified away by investing in both Thanh Dat and Tri Viet 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 Tri Viet 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 Tri Viet Management, you can compare the effects of market volatilities on Thanh Dat and Tri Viet 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 Tri Viet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and Tri Viet.
Diversification Opportunities for Thanh Dat and Tri Viet
Very weak diversification
The 3 months correlation between Thanh and Tri is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment and Tri Viet Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tri Viet Management 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 Tri Viet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tri Viet Management has no effect on the direction of Thanh Dat i.e., Thanh Dat and Tri Viet go up and down completely randomly.
Pair Corralation between Thanh Dat and Tri Viet
Assuming the 90 days trading horizon Thanh Dat Investment is expected to generate 0.65 times more return on investment than Tri Viet. However, Thanh Dat Investment is 1.54 times less risky than Tri Viet. It trades about 0.0 of its potential returns per unit of risk. Tri Viet Management is currently generating about -0.05 per unit of risk. If you would invest 2,730,000 in Thanh Dat Investment on September 12, 2024 and sell it today you would lose (10,000) from holding Thanh Dat Investment or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thanh Dat Investment vs. Tri Viet Management
Performance |
| Timeline |
| Thanh Dat Investment |
| Tri Viet Management |
Thanh Dat and Tri Viet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanh Dat and Tri Viet
The main advantage of trading using opposite Thanh Dat and Tri Viet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat position performs unexpectedly, Tri Viet 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 Tri Viet will offset losses from the drop in Tri Viet'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 |
| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet vs. Alphanam ME |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |