Correlation Between Tien Giang and Materials Petroleum
Can any of the company-specific risk be diversified away by investing in both Tien Giang and Materials Petroleum 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 Tien Giang and Materials Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tien Giang Investment and Materials Petroleum JSC, you can compare the effects of market volatilities on Tien Giang and Materials Petroleum 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 Tien Giang with a short position of Materials Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Giang and Materials Petroleum.
Diversification Opportunities for Tien Giang and Materials Petroleum
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tien and Materials is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tien Giang Investment and Materials Petroleum JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materials Petroleum JSC and Tien Giang 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 Tien Giang Investment are associated (or correlated) with Materials Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Materials Petroleum JSC has no effect on the direction of Tien Giang i.e., Tien Giang and Materials Petroleum go up and down completely randomly.
Pair Corralation between Tien Giang and Materials Petroleum
Assuming the 90 days trading horizon Tien Giang Investment is expected to generate 0.31 times more return on investment than Materials Petroleum. However, Tien Giang Investment is 3.19 times less risky than Materials Petroleum. It trades about 0.01 of its potential returns per unit of risk. Materials Petroleum JSC is currently generating about -0.01 per unit of risk. If you would invest 4,420,000 in Tien Giang Investment on September 3, 2024 and sell it today you would lose (5,000) from holding Tien Giang Investment or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.93% |
| Values | Daily Returns |
Tien Giang Investment vs. Materials Petroleum JSC
Performance |
| Timeline |
| Tien Giang Investment |
| Materials Petroleum JSC |
Tien Giang and Materials Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Giang and Materials Petroleum
The main advantage of trading using opposite Tien Giang and Materials Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Giang position performs unexpectedly, Materials Petroleum 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 Materials Petroleum will offset losses from the drop in Materials Petroleum's long position.| Tien Giang vs. Everland Investment JSC | Tien Giang vs. Binh Duong Trade | Tien Giang vs. Vina2 Investment and | Tien Giang vs. MST Investment JSC |
| Materials Petroleum vs. Tng Investment And | Materials Petroleum vs. Ha Long Investment | Materials Petroleum vs. Development Investment Construction | Materials Petroleum vs. Bao Ngoc Investment |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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