Correlation Between Phat Dat and TDG Global
Can any of the company-specific risk be diversified away by investing in both Phat Dat and TDG Global 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 Phat Dat and TDG Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phat Dat Real and TDG Global Investment, you can compare the effects of market volatilities on Phat Dat and TDG Global 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 Phat Dat with a short position of TDG Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phat Dat and TDG Global.
Diversification Opportunities for Phat Dat and TDG Global
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Phat and TDG is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Phat Dat Real and TDG Global Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDG Global Investment and Phat Dat 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 Phat Dat Real are associated (or correlated) with TDG Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDG Global Investment has no effect on the direction of Phat Dat i.e., Phat Dat and TDG Global go up and down completely randomly.
Pair Corralation between Phat Dat and TDG Global
Assuming the 90 days trading horizon Phat Dat Real is expected to generate 0.77 times more return on investment than TDG Global. However, Phat Dat Real is 1.29 times less risky than TDG Global. It trades about 0.0 of its potential returns per unit of risk. TDG Global Investment is currently generating about -0.17 per unit of risk. If you would invest 2,125,000 in Phat Dat Real on August 31, 2024 and sell it today you would lose (10,000) from holding Phat Dat Real or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Phat Dat Real vs. TDG Global Investment
Performance |
| Timeline |
| Phat Dat Real |
| TDG Global Investment |
Phat Dat and TDG Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phat Dat and TDG Global
The main advantage of trading using opposite Phat Dat and TDG Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phat Dat position performs unexpectedly, TDG Global 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 TDG Global will offset losses from the drop in TDG Global's long position.| Phat Dat vs. PetroVietnam Transportation Corp | Phat Dat vs. IDJ FINANCIAL | Phat Dat vs. Pha Lai Thermal | Phat Dat vs. FPT Digital Retail |
| TDG Global vs. HUD1 Investment and | TDG Global vs. LDG Investment JSC | TDG Global vs. Post and Telecommunications | TDG Global vs. Danang Education 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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