Correlation Between Post and Tay Ninh
Can any of the company-specific risk be diversified away by investing in both Post and Tay Ninh 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 Post and Tay Ninh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Post and Telecommunications and Tay Ninh Rubber, you can compare the effects of market volatilities on Post and Tay Ninh 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 Post with a short position of Tay Ninh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Tay Ninh.
Diversification Opportunities for Post and Tay Ninh
Excellent diversification
The 3 months correlation between Post and Tay is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Tay Ninh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tay Ninh Rubber and Post 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 Post and Telecommunications are associated (or correlated) with Tay Ninh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tay Ninh Rubber has no effect on the direction of Post i.e., Post and Tay Ninh go up and down completely randomly.
Pair Corralation between Post and Tay Ninh
Assuming the 90 days trading horizon Post and Telecommunications is expected to under-perform the Tay Ninh. In addition to that, Post is 1.09 times more volatile than Tay Ninh Rubber. It trades about -0.03 of its total potential returns per unit of risk. Tay Ninh Rubber is currently generating about 0.12 per unit of volatility. If you would invest 3,059,575 in Tay Ninh Rubber on September 14, 2024 and sell it today you would earn a total of 2,270,425 from holding Tay Ninh Rubber or generate 74.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.26% |
| Values | Daily Returns |
Post and Telecommunications vs. Tay Ninh Rubber
Performance |
| Timeline |
| Post and Telecommuni |
| Tay Ninh Rubber |
Post and Tay Ninh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Tay Ninh
The main advantage of trading using opposite Post and Tay Ninh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Tay Ninh 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 Tay Ninh will offset losses from the drop in Tay Ninh's long position.| Post vs. SCG Construction JSC | Post vs. Saigon Viendong Technology | Post vs. Ben Thanh Rubber | Post vs. Techno Agricultural Supplying |
| Tay Ninh vs. Post and Telecommunications | Tay Ninh vs. Nafoods Group JSC | Tay Ninh vs. Truong Thanh Furniture | Tay Ninh vs. Innovative Technology Development |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |