Correlation Between Saigon Telecommunicatio and Techno Agricultural
Can any of the company-specific risk be diversified away by investing in both Saigon Telecommunicatio and Techno Agricultural 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 Techno Agricultural 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 Techno Agricultural Supplying, you can compare the effects of market volatilities on Saigon Telecommunicatio and Techno Agricultural 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 Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Telecommunicatio and Techno Agricultural.
Diversification Opportunities for Saigon Telecommunicatio and Techno Agricultural
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saigon and Techno is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Telecommunication Techn and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Agricultural 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 Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of Saigon Telecommunicatio i.e., Saigon Telecommunicatio and Techno Agricultural go up and down completely randomly.
Pair Corralation between Saigon Telecommunicatio and Techno Agricultural
Assuming the 90 days trading horizon Saigon Telecommunication Technologies is expected to generate 1.75 times more return on investment than Techno Agricultural. However, Saigon Telecommunicatio is 1.75 times more volatile than Techno Agricultural Supplying. It trades about -0.03 of its potential returns per unit of risk. Techno Agricultural Supplying is currently generating about -0.4 per unit of risk. If you would invest 1,530,000 in Saigon Telecommunication Technologies on August 30, 2024 and sell it today you would lose (25,000) from holding Saigon Telecommunication Technologies or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Telecommunication Techn vs. Techno Agricultural Supplying
Performance |
| Timeline |
| Saigon Telecommunicatio |
| Techno Agricultural |
Saigon Telecommunicatio and Techno Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Telecommunicatio and Techno Agricultural
The main advantage of trading using opposite Saigon Telecommunicatio and Techno Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Telecommunicatio position performs unexpectedly, Techno Agricultural 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 Techno Agricultural will offset losses from the drop in Techno Agricultural's long position.| Saigon Telecommunicatio vs. FIT INVEST JSC | Saigon Telecommunicatio vs. Damsan JSC | Saigon Telecommunicatio vs. An Phat Plastic | Saigon Telecommunicatio vs. Alphanam ME |
| Techno Agricultural vs. FIT INVEST JSC | Techno Agricultural vs. Damsan JSC | Techno Agricultural vs. An Phat Plastic | Techno Agricultural vs. Alphanam ME |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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