Correlation Between Vu Dang and TNS Holdings
Can any of the company-specific risk be diversified away by investing in both Vu Dang and TNS Holdings 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 Vu Dang and TNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vu Dang Investment and TNS Holdings JSC, you can compare the effects of market volatilities on Vu Dang and TNS Holdings 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 Vu Dang with a short position of TNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vu Dang and TNS Holdings.
Diversification Opportunities for Vu Dang and TNS Holdings
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SVD and TNS is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Vu Dang Investment and TNS Holdings JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNS Holdings JSC and Vu Dang 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 Vu Dang Investment are associated (or correlated) with TNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNS Holdings JSC has no effect on the direction of Vu Dang i.e., Vu Dang and TNS Holdings go up and down completely randomly.
Pair Corralation between Vu Dang and TNS Holdings
Assuming the 90 days trading horizon Vu Dang is expected to generate 55.47 times less return on investment than TNS Holdings. But when comparing it to its historical volatility, Vu Dang Investment is 39.29 times less risky than TNS Holdings. It trades about 0.07 of its potential returns per unit of risk. TNS Holdings JSC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,362,535 in TNS Holdings JSC on September 14, 2024 and sell it today you would lose (312,535) from holding TNS Holdings JSC or give up 22.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.13% |
| Values | Daily Returns |
Vu Dang Investment vs. TNS Holdings JSC
Performance |
| Timeline |
| Vu Dang Investment |
| TNS Holdings JSC |
Vu Dang and TNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vu Dang and TNS Holdings
The main advantage of trading using opposite Vu Dang and TNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vu Dang position performs unexpectedly, TNS Holdings 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 TNS Holdings will offset losses from the drop in TNS Holdings' long position.| Vu Dang vs. Kien Giang Construction | Vu Dang vs. Binh Duong Construction | Vu Dang vs. VietinBank Securities JSC | Vu Dang vs. SCG Construction JSC |
| TNS Holdings vs. HUD1 Investment and | TNS Holdings vs. Vu Dang Investment | TNS Holdings vs. LDG Investment JSC | TNS Holdings vs. Development Investment Construction |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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