Correlation Between Long An and Techno Agricultural
Can any of the company-specific risk be diversified away by investing in both Long An and Techno Agricultural 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 Long An and Techno Agricultural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Long An Food and Techno Agricultural Supplying, you can compare the effects of market volatilities on Long An and Techno Agricultural 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 Long An with a short position of Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long An and Techno Agricultural.
Diversification Opportunities for Long An and Techno Agricultural
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Long and Techno is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Long An Food and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Agricultural and Long An 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 Long An Food are associated (or correlated) with Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of Long An i.e., Long An and Techno Agricultural go up and down completely randomly.
Pair Corralation between Long An and Techno Agricultural
Assuming the 90 days trading horizon Long An Food is expected to generate 1.04 times more return on investment than Techno Agricultural. However, Long An is 1.04 times more volatile than Techno Agricultural Supplying. It trades about 0.04 of its potential returns per unit of risk. Techno Agricultural Supplying is currently generating about -0.1 per unit of risk. If you would invest 1,735,000 in Long An Food on August 30, 2024 and sell it today you would earn a total of 60,000 from holding Long An Food or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Long An Food vs. Techno Agricultural Supplying
Performance |
| Timeline |
| Long An Food |
| Techno Agricultural |
Long An and Techno Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long An and Techno Agricultural
The main advantage of trading using opposite Long An and Techno Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long An position performs unexpectedly, Techno Agricultural 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 Techno Agricultural will offset losses from the drop in Techno Agricultural's long position.| Long An vs. Danang Rubber JSC | Long An vs. Phuoc Hoa Rubber | Long An vs. Pha Le Plastics | Long An vs. An Phat Plastic |
| Techno Agricultural vs. Petrolimex Insurance Corp | Techno Agricultural vs. Vietnam National Reinsurance | Techno Agricultural vs. HUD1 Investment and | Techno Agricultural vs. Tng Investment And |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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