Correlation Between TDG Global and Sao Ta
Can any of the company-specific risk be diversified away by investing in both TDG Global and Sao Ta 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 TDG Global and Sao Ta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TDG Global Investment and Sao Ta Foods, you can compare the effects of market volatilities on TDG Global and Sao Ta 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 TDG Global with a short position of Sao Ta. Check out your portfolio center. Please also check ongoing floating volatility patterns of TDG Global and Sao Ta.
Diversification Opportunities for TDG Global and Sao Ta
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TDG and Sao is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding TDG Global Investment and Sao Ta Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sao Ta Foods and TDG Global 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 TDG Global Investment are associated (or correlated) with Sao Ta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sao Ta Foods has no effect on the direction of TDG Global i.e., TDG Global and Sao Ta go up and down completely randomly.
Pair Corralation between TDG Global and Sao Ta
Assuming the 90 days trading horizon TDG Global Investment is expected to generate 3.55 times more return on investment than Sao Ta. However, TDG Global is 3.55 times more volatile than Sao Ta Foods. It trades about 0.34 of its potential returns per unit of risk. Sao Ta Foods is currently generating about 0.04 per unit of risk. If you would invest 354,000 in TDG Global Investment on November 28, 2024 and sell it today you would earn a total of 68,000 from holding TDG Global Investment or generate 19.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
TDG Global Investment vs. Sao Ta Foods
Performance |
| Timeline |
| TDG Global Investment |
| Sao Ta Foods |
TDG Global and Sao Ta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TDG Global and Sao Ta
The main advantage of trading using opposite TDG Global and Sao Ta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TDG Global position performs unexpectedly, Sao Ta 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 Sao Ta will offset losses from the drop in Sao Ta's long position.| TDG Global vs. Nam Kim Steel | TDG Global vs. Petrolimex Insurance Corp | TDG Global vs. Vincom Retail JSC | TDG Global vs. Hai An Transport |
| Sao Ta vs. Da Nang Construction | Sao Ta vs. Cotec Construction JSC | Sao Ta vs. Hanoi Beer Alcohol | Sao Ta vs. Vietnam Construction JSC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |