Correlation Between Elcom Technology and Tien Giang
Can any of the company-specific risk be diversified away by investing in both Elcom Technology and Tien Giang 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 Elcom Technology and Tien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elcom Technology Communications and Tien Giang Investment, you can compare the effects of market volatilities on Elcom Technology and Tien Giang 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 Elcom Technology with a short position of Tien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom Technology and Tien Giang.
Diversification Opportunities for Elcom Technology and Tien Giang
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elcom and Tien is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Elcom Technology Communication and Tien Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Giang Investment and Elcom Technology 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 Elcom Technology Communications are associated (or correlated) with Tien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Giang Investment has no effect on the direction of Elcom Technology i.e., Elcom Technology and Tien Giang go up and down completely randomly.
Pair Corralation between Elcom Technology and Tien Giang
Assuming the 90 days trading horizon Elcom Technology Communications is expected to generate 1.57 times more return on investment than Tien Giang. However, Elcom Technology is 1.57 times more volatile than Tien Giang Investment. It trades about 0.09 of its potential returns per unit of risk. Tien Giang Investment is currently generating about 0.0 per unit of risk. If you would invest 2,495,000 in Elcom Technology Communications on August 31, 2024 and sell it today you would earn a total of 65,000 from holding Elcom Technology Communications or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elcom Technology Communication vs. Tien Giang Investment
Performance |
| Timeline |
| Elcom Technology Com |
| Tien Giang Investment |
Elcom Technology and Tien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom Technology and Tien Giang
The main advantage of trading using opposite Elcom Technology and Tien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom Technology position performs unexpectedly, Tien Giang 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 Tien Giang will offset losses from the drop in Tien Giang's long position.| Elcom Technology vs. FIT INVEST JSC | Elcom Technology vs. Damsan JSC | Elcom Technology vs. An Phat Plastic | Elcom Technology vs. Alphanam ME |
| Tien Giang vs. FIT INVEST JSC | Tien Giang vs. Damsan JSC | Tien Giang vs. An Phat Plastic | Tien Giang 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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