Correlation Between Ha Long and Tri Viet
Can any of the company-specific risk be diversified away by investing in both Ha Long 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 Ha Long and Tri Viet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ha Long Investment and Tri Viet Management, you can compare the effects of market volatilities on Ha Long 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 Ha Long with a short position of Tri Viet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ha Long and Tri Viet.
Diversification Opportunities for Ha Long and Tri Viet
Average diversification
The 3 months correlation between HID and Tri is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ha Long 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 Ha Long 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 Ha Long 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 Ha Long i.e., Ha Long and Tri Viet go up and down completely randomly.
Pair Corralation between Ha Long and Tri Viet
Assuming the 90 days trading horizon Ha Long Investment is expected to generate 0.25 times more return on investment than Tri Viet. However, Ha Long Investment is 4.05 times less risky than Tri Viet. It trades about -0.02 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 271,000 in Ha Long Investment on September 12, 2024 and sell it today you would lose (1,000.00) from holding Ha Long Investment or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ha Long Investment vs. Tri Viet Management
Performance |
| Timeline |
| Ha Long Investment |
| Tri Viet Management |
Ha Long and Tri Viet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ha Long and Tri Viet
The main advantage of trading using opposite Ha Long and Tri Viet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ha Long 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.The idea behind Ha Long Investment and Tri Viet Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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