Correlation Between Tien Giang and Fecon Mining
Can any of the company-specific risk be diversified away by investing in both Tien Giang and Fecon Mining 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 Fecon Mining 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 Fecon Mining JSC, you can compare the effects of market volatilities on Tien Giang and Fecon Mining 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 Fecon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Giang and Fecon Mining.
Diversification Opportunities for Tien Giang and Fecon Mining
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tien and Fecon is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tien Giang Investment and Fecon Mining JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fecon Mining 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 Fecon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fecon Mining JSC has no effect on the direction of Tien Giang i.e., Tien Giang and Fecon Mining go up and down completely randomly.
Pair Corralation between Tien Giang and Fecon Mining
Assuming the 90 days trading horizon Tien Giang Investment is expected to generate 0.64 times more return on investment than Fecon Mining. However, Tien Giang Investment is 1.55 times less risky than Fecon Mining. It trades about 0.0 of its potential returns per unit of risk. Fecon Mining JSC is currently generating about -0.26 per unit of risk. If you would invest 4,400,000 in Tien Giang Investment on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Tien Giang Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tien Giang Investment vs. Fecon Mining JSC
Performance |
| Timeline |
| Tien Giang Investment |
| Fecon Mining JSC |
Tien Giang and Fecon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Giang and Fecon Mining
The main advantage of trading using opposite Tien Giang and Fecon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Giang position performs unexpectedly, Fecon Mining 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 Fecon Mining will offset losses from the drop in Fecon Mining'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 |
| Fecon Mining vs. PVI Reinsurance Corp | Fecon Mining vs. PetroVietnam Drilling Well | Fecon Mining vs. Petrolimex Petrochemical JSC | Fecon Mining 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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