Correlation Between Elcom Technology and Thu Duc
Can any of the company-specific risk be diversified away by investing in both Elcom Technology and Thu Duc 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 Thu Duc 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 Thu Duc TradingImport, you can compare the effects of market volatilities on Elcom Technology and Thu Duc 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 Thu Duc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom Technology and Thu Duc.
Diversification Opportunities for Elcom Technology and Thu Duc
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elcom and Thu is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Elcom Technology Communication and Thu Duc TradingImport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thu Duc TradingImport 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 Thu Duc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thu Duc TradingImport has no effect on the direction of Elcom Technology i.e., Elcom Technology and Thu Duc go up and down completely randomly.
Pair Corralation between Elcom Technology and Thu Duc
Assuming the 90 days trading horizon Elcom Technology Communications is expected to generate 0.73 times more return on investment than Thu Duc. However, Elcom Technology Communications is 1.37 times less risky than Thu Duc. It trades about 0.1 of its potential returns per unit of risk. Thu Duc TradingImport is currently generating about -0.35 per unit of risk. If you would invest 2,695,000 in Elcom Technology Communications on October 30, 2024 and sell it today you would earn a total of 90,000 from holding Elcom Technology Communications or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 45.0% |
| Values | Daily Returns |
Elcom Technology Communication vs. Thu Duc TradingImport
Performance |
| Timeline |
| Elcom Technology Com |
| Thu Duc TradingImport |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elcom Technology and Thu Duc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom Technology and Thu Duc
The main advantage of trading using opposite Elcom Technology and Thu Duc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom Technology position performs unexpectedly, Thu Duc 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 Thu Duc will offset losses from the drop in Thu Duc's long position.| Elcom Technology vs. FIT INVEST JSC | Elcom Technology vs. Damsan JSC | Elcom Technology vs. An Phat Plastic | Elcom Technology vs. APG Securities Joint |
| Thu Duc vs. Ba Ria Thermal | Thu Duc vs. CEO Group JSC | Thu Duc vs. Pha Le Plastics | Thu Duc vs. Tay Ninh Rubber |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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