Correlation Between Empire State and Tien Son
Can any of the company-specific risk be diversified away by investing in both Empire State and Tien Son 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 Empire State and Tien Son into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Tien Son Thanh, you can compare the effects of market volatilities on Empire State and Tien Son 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 Empire State with a short position of Tien Son. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Tien Son.
Diversification Opportunities for Empire State and Tien Son
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Empire and Tien is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and Tien Son Thanh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Son Thanh and Empire State 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 Empire State Realty are associated (or correlated) with Tien Son. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Son Thanh has no effect on the direction of Empire State i.e., Empire State and Tien Son go up and down completely randomly.
Pair Corralation between Empire State and Tien Son
Given the investment horizon of 90 days Empire State Realty is expected to generate 2.47 times more return on investment than Tien Son. However, Empire State is 2.47 times more volatile than Tien Son Thanh. It trades about 0.17 of its potential returns per unit of risk. Tien Son Thanh is currently generating about 0.0 per unit of risk. If you would invest 1,049 in Empire State Realty on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Empire State Realty or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Empire State Realty vs. Tien Son Thanh
Performance |
| Timeline |
| Empire State Realty |
| Tien Son Thanh |
Empire State and Tien Son Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Tien Son
The main advantage of trading using opposite Empire State and Tien Son positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State position performs unexpectedly, Tien Son 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 Son will offset losses from the drop in Tien Son's long position.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| Tien Son vs. Vinhomes JSC | Tien Son vs. Mobile World Investment | Tien Son vs. Saigon Beer Alcohol | Tien Son vs. Hanoi Beer Alcohol |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |