Correlation Between Din Capital and Tien Giang
Can any of the company-specific risk be diversified away by investing in both Din Capital and Tien Giang 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 Din Capital and Tien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Din Capital Investment and Tien Giang Investment, you can compare the effects of market volatilities on Din Capital and Tien Giang 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 Din Capital with a short position of Tien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Din Capital and Tien Giang.
Diversification Opportunities for Din Capital and Tien Giang
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Din and Tien is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Din Capital Investment and Tien Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Giang Investment and Din Capital 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 Din Capital Investment are associated (or correlated) with Tien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Giang Investment has no effect on the direction of Din Capital i.e., Din Capital and Tien Giang go up and down completely randomly.
Pair Corralation between Din Capital and Tien Giang
Assuming the 90 days trading horizon Din Capital is expected to generate 1.11 times less return on investment than Tien Giang. In addition to that, Din Capital is 1.64 times more volatile than Tien Giang Investment. It trades about 0.04 of its total potential returns per unit of risk. Tien Giang Investment is currently generating about 0.08 per unit of volatility. If you would invest 3,376,542 in Tien Giang Investment on September 3, 2024 and sell it today you would earn a total of 1,038,458 from holding Tien Giang Investment or generate 30.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.43% |
| Values | Daily Returns |
Din Capital Investment vs. Tien Giang Investment
Performance |
| Timeline |
| Din Capital Investment |
| Tien Giang Investment |
Din Capital and Tien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Din Capital and Tien Giang
The main advantage of trading using opposite Din Capital and Tien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Din Capital position performs unexpectedly, Tien Giang 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 Tien Giang will offset losses from the drop in Tien Giang's long position.| Din Capital vs. FIT INVEST JSC | Din Capital vs. Damsan JSC | Din Capital vs. An Phat Plastic | Din Capital vs. Alphanam ME |
| Tien Giang vs. Everland Investment JSC | Tien Giang vs. Binh Duong Trade | Tien Giang vs. Vina2 Investment and | Tien Giang vs. MST Investment 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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