Correlation Between Song Hong and Tri Viet
Can any of the company-specific risk be diversified away by investing in both Song Hong 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 Song Hong and Tri Viet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Song Hong Aluminum and Tri Viet Management, you can compare the effects of market volatilities on Song Hong 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 Song Hong with a short position of Tri Viet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Song Hong and Tri Viet.
Diversification Opportunities for Song Hong and Tri Viet
Good diversification
The 3 months correlation between Song and Tri is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Song Hong Aluminum 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 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 Aluminum 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 Song Hong i.e., Song Hong and Tri Viet go up and down completely randomly.
Pair Corralation between Song Hong and Tri Viet
Assuming the 90 days trading horizon Song Hong Aluminum is expected to under-perform the Tri Viet. But the stock apears to be less risky and, when comparing its historical volatility, Song Hong Aluminum is 1.33 times less risky than Tri Viet. The stock trades about -0.1 of its potential returns per unit of risk. The Tri Viet Management is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,010,000 in Tri Viet Management on September 2, 2024 and sell it today you would lose (10,000) from holding Tri Viet Management or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Song Hong Aluminum vs. Tri Viet Management
Performance |
| Timeline |
| Song Hong Aluminum |
| Tri Viet Management |
Song Hong and Tri Viet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Song Hong and Tri Viet
The main advantage of trading using opposite Song Hong and Tri Viet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Song Hong 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.| Song Hong vs. FIT INVEST JSC | Song Hong vs. Damsan JSC | Song Hong vs. An Phat Plastic | Song Hong vs. Alphanam ME |
| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet vs. Alphanam ME |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |