Correlation Between Tien Giang and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both Tien Giang and Thanh Dat 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 Thanh Dat 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 Thanh Dat Investment, you can compare the effects of market volatilities on Tien Giang and Thanh Dat 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 Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Giang and Thanh Dat.
Diversification Opportunities for Tien Giang and Thanh Dat
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tien and Thanh is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tien Giang Investment and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat Investment 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 Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of Tien Giang i.e., Tien Giang and Thanh Dat go up and down completely randomly.
Pair Corralation between Tien Giang and Thanh Dat
Assuming the 90 days trading horizon Tien Giang is expected to generate 39.85 times less return on investment than Thanh Dat. But when comparing it to its historical volatility, Tien Giang Investment is 2.95 times less risky than Thanh Dat. It trades about 0.0 of its potential returns per unit of risk. Thanh Dat Investment is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,570,000 in Thanh Dat Investment on August 31, 2024 and sell it today you would earn a total of 70,000 from holding Thanh Dat Investment or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tien Giang Investment vs. Thanh Dat Investment
Performance |
| Timeline |
| Tien Giang Investment |
| Thanh Dat Investment |
Tien Giang and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Giang and Thanh Dat
The main advantage of trading using opposite Tien Giang and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Giang position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's long position.| Tien Giang vs. FIT INVEST JSC | Tien Giang vs. Damsan JSC | Tien Giang vs. An Phat Plastic | Tien Giang vs. Alphanam ME |
| Thanh Dat vs. FIT INVEST JSC | Thanh Dat vs. Damsan JSC | Thanh Dat vs. An Phat Plastic | Thanh Dat vs. Alphanam ME |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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