Correlation Between Song Hong and Tng Investment
Can any of the company-specific risk be diversified away by investing in both Song Hong 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 Song Hong and Tng Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Song Hong Garment and Tng Investment And, you can compare the effects of market volatilities on Song Hong 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 Song Hong with a short position of Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Song Hong and Tng Investment.
Diversification Opportunities for Song Hong and Tng Investment
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Song and Tng is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Song Hong Garment 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 Song Hong 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 Song Hong Garment 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 Song Hong i.e., Song Hong and Tng Investment go up and down completely randomly.
Pair Corralation between Song Hong and Tng Investment
Assuming the 90 days trading horizon Song Hong Garment is expected to generate 0.78 times more return on investment than Tng Investment. However, Song Hong Garment is 1.28 times less risky than Tng Investment. It trades about 0.13 of its potential returns per unit of risk. Tng Investment And is currently generating about -0.05 per unit of risk. If you would invest 4,485,882 in Song Hong Garment on September 2, 2024 and sell it today you would earn a total of 434,118 from holding Song Hong Garment or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Song Hong Garment vs. Tng Investment And
Performance |
| Timeline |
| Song Hong Garment |
| Tng Investment And |
Song Hong and Tng Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Song Hong and Tng Investment
The main advantage of trading using opposite Song Hong and Tng Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Song Hong 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.| Song Hong vs. FIT INVEST JSC | Song Hong vs. Damsan JSC | Song Hong vs. An Phat Plastic | Song Hong vs. Alphanam ME |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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