Correlation Between Saigon Telecommunicatio and TDT Investment
Can any of the company-specific risk be diversified away by investing in both Saigon Telecommunicatio and TDT Investment 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 Saigon Telecommunicatio and TDT Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Telecommunication Technologies and TDT Investment and, you can compare the effects of market volatilities on Saigon Telecommunicatio and TDT Investment 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 Saigon Telecommunicatio with a short position of TDT Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Telecommunicatio and TDT Investment.
Diversification Opportunities for Saigon Telecommunicatio and TDT Investment
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Saigon and TDT is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Telecommunication Techn and TDT Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDT Investment and Saigon Telecommunicatio 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 Saigon Telecommunication Technologies are associated (or correlated) with TDT Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDT Investment has no effect on the direction of Saigon Telecommunicatio i.e., Saigon Telecommunicatio and TDT Investment go up and down completely randomly.
Pair Corralation between Saigon Telecommunicatio and TDT Investment
Assuming the 90 days trading horizon Saigon Telecommunication Technologies is expected to generate 1.64 times more return on investment than TDT Investment. However, Saigon Telecommunicatio is 1.64 times more volatile than TDT Investment and. It trades about 0.04 of its potential returns per unit of risk. TDT Investment and is currently generating about -0.01 per unit of risk. If you would invest 1,160,000 in Saigon Telecommunication Technologies on August 26, 2024 and sell it today you would earn a total of 305,000 from holding Saigon Telecommunication Technologies or generate 26.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Saigon Telecommunication Techn vs. TDT Investment and
Performance |
| Timeline |
| Saigon Telecommunicatio |
| TDT Investment |
Saigon Telecommunicatio and TDT Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Telecommunicatio and TDT Investment
The main advantage of trading using opposite Saigon Telecommunicatio and TDT Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Telecommunicatio position performs unexpectedly, TDT Investment 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 TDT Investment will offset losses from the drop in TDT Investment's long position.| Saigon Telecommunicatio vs. FIT INVEST JSC | Saigon Telecommunicatio vs. Damsan JSC | Saigon Telecommunicatio vs. An Phat Plastic | Saigon Telecommunicatio vs. APG Securities Joint |
| TDT Investment vs. FIT INVEST JSC | TDT Investment vs. Damsan JSC | TDT Investment vs. An Phat Plastic | TDT Investment vs. APG Securities Joint |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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