Correlation Between LDG Investment and Tri Viet
Can any of the company-specific risk be diversified away by investing in both LDG Investment 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 LDG Investment and Tri Viet 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 Tri Viet Management, you can compare the effects of market volatilities on LDG Investment 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 LDG Investment with a short position of Tri Viet. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDG Investment and Tri Viet.
Diversification Opportunities for LDG Investment and Tri Viet
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between LDG and Tri is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding LDG Investment JSC 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 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 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 LDG Investment i.e., LDG Investment and Tri Viet go up and down completely randomly.
Pair Corralation between LDG Investment and Tri Viet
Assuming the 90 days trading horizon LDG Investment JSC is expected to under-perform the Tri Viet. But the stock apears to be less risky and, when comparing its historical volatility, LDG Investment JSC is 1.97 times less risky than Tri Viet. The stock trades about -0.06 of its potential returns per unit of risk. The Tri Viet Management is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 980,000 in Tri Viet Management on August 28, 2024 and sell it today you would earn a total of 10,000 from holding Tri Viet Management or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LDG Investment JSC vs. Tri Viet Management
Performance |
| Timeline |
| LDG Investment JSC |
| Tri Viet Management |
LDG Investment and Tri Viet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LDG Investment and Tri Viet
The main advantage of trading using opposite LDG Investment and Tri Viet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDG Investment 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.| LDG Investment vs. FIT INVEST JSC | LDG Investment vs. Damsan JSC | LDG Investment vs. An Phat Plastic | LDG Investment vs. APG Securities Joint |
| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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