Correlation Between Tien Phong and Investment
Can any of the company-specific risk be diversified away by investing in both Tien Phong and 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 Tien Phong and Investment 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 Investment And Construction, you can compare the effects of market volatilities on Tien Phong and 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 Tien Phong with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Phong and Investment.
Diversification Opportunities for Tien Phong and Investment
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tien and Investment is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Tien Phong Plastic and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of Tien Phong i.e., Tien Phong and Investment go up and down completely randomly.
Pair Corralation between Tien Phong and Investment
Assuming the 90 days trading horizon Tien Phong Plastic is expected to generate 0.66 times more return on investment than Investment. However, Tien Phong Plastic is 1.52 times less risky than Investment. It trades about 0.04 of its potential returns per unit of risk. Investment And Construction is currently generating about -0.13 per unit of risk. If you would invest 5,763,846 in Tien Phong Plastic on October 26, 2024 and sell it today you would earn a total of 156,154 from holding Tien Phong Plastic or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tien Phong Plastic vs. Investment And Construction
Performance |
| Timeline |
| Tien Phong Plastic |
| Investment And Const |
Tien Phong and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Phong and Investment
The main advantage of trading using opposite Tien Phong and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Phong position performs unexpectedly, 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 Investment will offset losses from the drop in Investment's long position.| Tien Phong vs. FIT INVEST JSC | Tien Phong vs. Damsan JSC | Tien Phong vs. An Phat Plastic | Tien Phong vs. APG Securities Joint |
| Investment vs. Saigon Viendong Technology | Investment vs. Elcom Technology Communications | Investment vs. Ha Noi Education | Investment vs. Investment and Industrial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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