Correlation Between Tien Giang and Ha Do
Can any of the company-specific risk be diversified away by investing in both Tien Giang and Ha Do 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 Ha Do 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 Ha Do Group, you can compare the effects of market volatilities on Tien Giang and Ha Do 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 Ha Do. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Giang and Ha Do.
Diversification Opportunities for Tien Giang and Ha Do
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tien and HDG is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tien Giang Investment and Ha Do Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ha Do Group 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 Ha Do. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ha Do Group has no effect on the direction of Tien Giang i.e., Tien Giang and Ha Do go up and down completely randomly.
Pair Corralation between Tien Giang and Ha Do
Assuming the 90 days trading horizon Tien Giang Investment is expected to under-perform the Ha Do. But the stock apears to be less risky and, when comparing its historical volatility, Tien Giang Investment is 1.67 times less risky than Ha Do. The stock trades about -0.02 of its potential returns per unit of risk. The Ha Do Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,670,000 in Ha Do Group on August 28, 2024 and sell it today you would earn a total of 185,000 from holding Ha Do Group or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tien Giang Investment vs. Ha Do Group
Performance |
| Timeline |
| Tien Giang Investment |
| Ha Do Group |
Tien Giang and Ha Do Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Giang and Ha Do
The main advantage of trading using opposite Tien Giang and Ha Do positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Giang position performs unexpectedly, Ha Do 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 Ha Do will offset losses from the drop in Ha Do's long position.| Tien Giang vs. Danang Rubber JSC | Tien Giang vs. Phuoc Hoa Rubber | Tien Giang vs. Southern Rubber Industry | Tien Giang vs. Tay Ninh Rubber |
| Ha Do vs. Military Insurance Corp | Ha Do vs. Development Investment Construction | Ha Do vs. Ba Ria Thermal | Ha Do vs. Tien Giang 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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