Correlation Between LDG Investment and TNS Holdings
Can any of the company-specific risk be diversified away by investing in both LDG Investment and TNS Holdings 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 LDG Investment and TNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LDG Investment JSC and TNS Holdings JSC, you can compare the effects of market volatilities on LDG Investment and TNS Holdings 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 LDG Investment with a short position of TNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDG Investment and TNS Holdings.
Diversification Opportunities for LDG Investment and TNS Holdings
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LDG and TNS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding LDG Investment JSC and TNS Holdings JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNS Holdings JSC and LDG Investment 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 LDG Investment JSC are associated (or correlated) with TNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNS Holdings JSC has no effect on the direction of LDG Investment i.e., LDG Investment and TNS Holdings go up and down completely randomly.
Pair Corralation between LDG Investment and TNS Holdings
Assuming the 90 days trading horizon LDG Investment JSC is expected to under-perform the TNS Holdings. But the stock apears to be less risky and, when comparing its historical volatility, LDG Investment JSC is 1.01 times less risky than TNS Holdings. The stock trades about 0.0 of its potential returns per unit of risk. The TNS Holdings JSC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,040,000 in TNS Holdings JSC on September 14, 2024 and sell it today you would earn a total of 10,000 from holding TNS Holdings JSC or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
LDG Investment JSC vs. TNS Holdings JSC
Performance |
| Timeline |
| LDG Investment JSC |
| TNS Holdings JSC |
LDG Investment and TNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LDG Investment and TNS Holdings
The main advantage of trading using opposite LDG Investment and TNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDG Investment position performs unexpectedly, TNS Holdings 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 TNS Holdings will offset losses from the drop in TNS Holdings' long position.| LDG Investment vs. FIT INVEST JSC | LDG Investment vs. Damsan JSC | LDG Investment vs. An Phat Plastic | LDG Investment vs. Alphanam ME |
| TNS Holdings vs. HUD1 Investment and | TNS Holdings vs. Vu Dang Investment | TNS Holdings vs. LDG Investment JSC | TNS Holdings vs. Development Investment Construction |
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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