Correlation Between Tien Phong and Baoviet Securities
Can any of the company-specific risk be diversified away by investing in both Tien Phong and Baoviet Securities 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 Tien Phong and Baoviet Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tien Phong Plastic and Baoviet Securities, you can compare the effects of market volatilities on Tien Phong and Baoviet Securities 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 Tien Phong with a short position of Baoviet Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Phong and Baoviet Securities.
Diversification Opportunities for Tien Phong and Baoviet Securities
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tien and Baoviet is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tien Phong Plastic and Baoviet Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoviet Securities and Tien Phong 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 Tien Phong Plastic are associated (or correlated) with Baoviet Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoviet Securities has no effect on the direction of Tien Phong i.e., Tien Phong and Baoviet Securities go up and down completely randomly.
Pair Corralation between Tien Phong and Baoviet Securities
Assuming the 90 days trading horizon Tien Phong Plastic is expected to generate 1.28 times more return on investment than Baoviet Securities. However, Tien Phong is 1.28 times more volatile than Baoviet Securities. It trades about -0.13 of its potential returns per unit of risk. Baoviet Securities is currently generating about -0.24 per unit of risk. If you would invest 6,252,308 in Tien Phong Plastic on October 20, 2024 and sell it today you would lose (382,308) from holding Tien Phong Plastic or give up 6.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tien Phong Plastic vs. Baoviet Securities
Performance |
| Timeline |
| Tien Phong Plastic |
| Baoviet Securities |
Tien Phong and Baoviet Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Phong and Baoviet Securities
The main advantage of trading using opposite Tien Phong and Baoviet Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Phong position performs unexpectedly, Baoviet Securities 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 Baoviet Securities will offset losses from the drop in Baoviet Securities' long position.| Tien Phong vs. Da Nang Construction | Tien Phong vs. 1369 Construction JSC | Tien Phong vs. Hochiminh City Metal | Tien Phong vs. Transport and Industry |
| Baoviet Securities vs. Tien Phong Plastic | Baoviet Securities vs. An Phat Holdings | Baoviet Securities vs. FPT Corp | Baoviet Securities vs. POST TELECOMMU |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |