Correlation Between Hochiminh City and Tng Investment
Can any of the company-specific risk be diversified away by investing in both Hochiminh City and Tng Investment 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 Hochiminh City and Tng Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hochiminh City Metal and Tng Investment And, you can compare the effects of market volatilities on Hochiminh City and Tng Investment 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 Hochiminh City with a short position of Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochiminh City and Tng Investment.
Diversification Opportunities for Hochiminh City and Tng Investment
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hochiminh and Tng is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hochiminh City Metal and Tng Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tng Investment And and Hochiminh City 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 Hochiminh City Metal are associated (or correlated) with Tng Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tng Investment And has no effect on the direction of Hochiminh City i.e., Hochiminh City and Tng Investment go up and down completely randomly.
Pair Corralation between Hochiminh City and Tng Investment
Assuming the 90 days trading horizon Hochiminh City is expected to generate 1.2 times less return on investment than Tng Investment. But when comparing it to its historical volatility, Hochiminh City Metal is 1.87 times less risky than Tng Investment. It trades about 0.03 of its potential returns per unit of risk. Tng Investment And is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,421,412 in Tng Investment And on August 29, 2024 and sell it today you would earn a total of 8,588 from holding Tng Investment And or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochiminh City Metal vs. Tng Investment And
Performance |
| Timeline |
| Hochiminh City Metal |
| Tng Investment And |
Hochiminh City and Tng Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochiminh City and Tng Investment
The main advantage of trading using opposite Hochiminh City and Tng Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochiminh City position performs unexpectedly, Tng Investment 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 Tng Investment will offset losses from the drop in Tng Investment's long position.| Hochiminh City vs. Saigon Telecommunication Technologies | Hochiminh City vs. Military Insurance Corp | Hochiminh City vs. VietinBank Securities JSC | Hochiminh City vs. Vietnam Dairy Products |
| Tng Investment vs. FIT INVEST JSC | Tng Investment vs. Damsan JSC | Tng Investment vs. An Phat Plastic | Tng Investment vs. APG Securities Joint |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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