Correlation Between TDT Investment and Bao Ngoc
Can any of the company-specific risk be diversified away by investing in both TDT Investment and Bao Ngoc 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 TDT Investment and Bao Ngoc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TDT Investment and and Bao Ngoc Investment, you can compare the effects of market volatilities on TDT Investment and Bao Ngoc 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 TDT Investment with a short position of Bao Ngoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of TDT Investment and Bao Ngoc.
Diversification Opportunities for TDT Investment and Bao Ngoc
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TDT and Bao is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding TDT Investment and and Bao Ngoc Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bao Ngoc Investment and TDT Investment 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 TDT Investment and are associated (or correlated) with Bao Ngoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bao Ngoc Investment has no effect on the direction of TDT Investment i.e., TDT Investment and Bao Ngoc go up and down completely randomly.
Pair Corralation between TDT Investment and Bao Ngoc
Assuming the 90 days trading horizon TDT Investment and is expected to under-perform the Bao Ngoc. But the stock apears to be less risky and, when comparing its historical volatility, TDT Investment and is 1.91 times less risky than Bao Ngoc. The stock trades about 0.0 of its potential returns per unit of risk. The Bao Ngoc Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 960,000 in Bao Ngoc Investment on October 18, 2024 and sell it today you would lose (50,000) from holding Bao Ngoc Investment or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TDT Investment and vs. Bao Ngoc Investment
Performance |
| Timeline |
| TDT Investment |
| Bao Ngoc Investment |
TDT Investment and Bao Ngoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TDT Investment and Bao Ngoc
The main advantage of trading using opposite TDT Investment and Bao Ngoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TDT Investment position performs unexpectedly, Bao Ngoc 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 Bao Ngoc will offset losses from the drop in Bao Ngoc's long position.| TDT Investment vs. FIT INVEST JSC | TDT Investment vs. Damsan JSC | TDT Investment vs. An Phat Plastic | TDT Investment vs. APG Securities Joint |
| Bao Ngoc vs. TDT Investment and | Bao Ngoc vs. Construction And Investment | Bao Ngoc vs. Hochiminh City Metal | Bao Ngoc vs. SMC Investment Trading |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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