Correlation Between TDG Global and Vietnam Dairy
Can any of the company-specific risk be diversified away by investing in both TDG Global and Vietnam Dairy 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 Vietnam Dairy 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 Vietnam Dairy Products, you can compare the effects of market volatilities on TDG Global and Vietnam Dairy 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 Vietnam Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of TDG Global and Vietnam Dairy.
Diversification Opportunities for TDG Global and Vietnam Dairy
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between TDG and Vietnam is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding TDG Global Investment and Vietnam Dairy Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Dairy Products 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 Vietnam Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Dairy Products has no effect on the direction of TDG Global i.e., TDG Global and Vietnam Dairy go up and down completely randomly.
Pair Corralation between TDG Global and Vietnam Dairy
Assuming the 90 days trading horizon TDG Global Investment is expected to generate 2.53 times more return on investment than Vietnam Dairy. However, TDG Global is 2.53 times more volatile than Vietnam Dairy Products. It trades about 0.34 of its potential returns per unit of risk. Vietnam Dairy Products is currently generating about 0.18 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 Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
TDG Global Investment vs. Vietnam Dairy Products
Performance |
| Timeline |
| TDG Global Investment |
| Vietnam Dairy Products |
TDG Global and Vietnam Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TDG Global and Vietnam Dairy
The main advantage of trading using opposite TDG Global and Vietnam Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TDG Global position performs unexpectedly, Vietnam Dairy 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 Vietnam Dairy will offset losses from the drop in Vietnam Dairy'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 |
| Vietnam Dairy vs. PV2 Investment JSC | Vietnam Dairy vs. Educational Book In | Vietnam Dairy vs. PC3 Investment JSC | Vietnam Dairy vs. Hochiminh City Metal |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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