Correlation Between Tien Phong and Book
Can any of the company-specific risk be diversified away by investing in both Tien Phong and Book 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 Book 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 Book And Educational, you can compare the effects of market volatilities on Tien Phong and Book 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 Book. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Phong and Book.
Diversification Opportunities for Tien Phong and Book
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tien and Book is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Tien Phong Plastic and Book And Educational in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Book And Educational 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 Book. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Book And Educational has no effect on the direction of Tien Phong i.e., Tien Phong and Book go up and down completely randomly.
Pair Corralation between Tien Phong and Book
Assuming the 90 days trading horizon Tien Phong Plastic is expected to under-perform the Book. But the stock apears to be less risky and, when comparing its historical volatility, Tien Phong Plastic is 1.88 times less risky than Book. The stock trades about -0.03 of its potential returns per unit of risk. The Book And Educational is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,800,000 in Book And Educational on November 2, 2024 and sell it today you would lose (50,000) from holding Book And Educational or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.66% |
| Values | Daily Returns |
Tien Phong Plastic vs. Book And Educational
Performance |
| Timeline |
| Tien Phong Plastic |
| Book And Educational |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Tien Phong and Book Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Phong and Book
The main advantage of trading using opposite Tien Phong and Book positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Phong position performs unexpectedly, Book 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 Book will offset losses from the drop in Book's long position.| Tien Phong vs. Vietnam National Reinsurance | Tien Phong vs. VietinBank Securities JSC | Tien Phong vs. PV2 Investment JSC | Tien Phong vs. Vnsteel Vicasa JSC |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |