Correlation Between Tien Phong and Saigon Thuong
Can any of the company-specific risk be diversified away by investing in both Tien Phong and Saigon Thuong 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 Saigon Thuong 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 Saigon Thuong Tin, you can compare the effects of market volatilities on Tien Phong and Saigon Thuong 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 Saigon Thuong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Phong and Saigon Thuong.
Diversification Opportunities for Tien Phong and Saigon Thuong
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tien and Saigon is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tien Phong Plastic and Saigon Thuong Tin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Thuong Tin 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 Saigon Thuong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Thuong Tin has no effect on the direction of Tien Phong i.e., Tien Phong and Saigon Thuong go up and down completely randomly.
Pair Corralation between Tien Phong and Saigon Thuong
Assuming the 90 days trading horizon Tien Phong Plastic is expected to generate 1.21 times more return on investment than Saigon Thuong. However, Tien Phong is 1.21 times more volatile than Saigon Thuong Tin. It trades about 0.08 of its potential returns per unit of risk. Saigon Thuong Tin is currently generating about -0.04 per unit of risk. If you would invest 3,715,163 in Tien Phong Plastic on September 12, 2024 and sell it today you would earn a total of 2,634,837 from holding Tien Phong Plastic or generate 70.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Tien Phong Plastic vs. Saigon Thuong Tin
Performance |
| Timeline |
| Tien Phong Plastic |
| Saigon Thuong Tin |
Tien Phong and Saigon Thuong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Phong and Saigon Thuong
The main advantage of trading using opposite Tien Phong and Saigon Thuong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Phong position performs unexpectedly, Saigon Thuong 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 Saigon Thuong will offset losses from the drop in Saigon Thuong's long position.| Tien Phong vs. FIT INVEST JSC | Tien Phong vs. Damsan JSC | Tien Phong vs. An Phat Plastic | Tien Phong vs. Alphanam ME |
| Saigon Thuong vs. Saigon Viendong Technology | Saigon Thuong vs. Bao Ngoc Investment | Saigon Thuong vs. Petrovietnam Technical Services | Saigon Thuong vs. TDG Global Investment |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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