Correlation Between Tien Giang and Saigon Viendong
Can any of the company-specific risk be diversified away by investing in both Tien Giang and Saigon Viendong 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 Saigon Viendong 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 Saigon Viendong Technology, you can compare the effects of market volatilities on Tien Giang and Saigon Viendong 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 Saigon Viendong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Giang and Saigon Viendong.
Diversification Opportunities for Tien Giang and Saigon Viendong
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tien and Saigon is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Tien Giang Investment and Saigon Viendong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Viendong Tech 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 Saigon Viendong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Viendong Tech has no effect on the direction of Tien Giang i.e., Tien Giang and Saigon Viendong go up and down completely randomly.
Pair Corralation between Tien Giang and Saigon Viendong
Assuming the 90 days trading horizon Tien Giang Investment is expected to generate 0.66 times more return on investment than Saigon Viendong. However, Tien Giang Investment is 1.52 times less risky than Saigon Viendong. It trades about 0.07 of its potential returns per unit of risk. Saigon Viendong Technology is currently generating about 0.04 per unit of risk. If you would invest 2,739,489 in Tien Giang Investment on August 27, 2024 and sell it today you would earn a total of 1,610,511 from holding Tien Giang Investment or generate 58.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.14% |
| Values | Daily Returns |
Tien Giang Investment vs. Saigon Viendong Technology
Performance |
| Timeline |
| Tien Giang Investment |
| Saigon Viendong Tech |
Tien Giang and Saigon Viendong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Giang and Saigon Viendong
The main advantage of trading using opposite Tien Giang and Saigon Viendong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Giang position performs unexpectedly, Saigon Viendong 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 Saigon Viendong will offset losses from the drop in Saigon Viendong'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 |
| Saigon Viendong vs. Thanh Dat Investment | Saigon Viendong vs. HVC Investment and | Saigon Viendong vs. Tien Giang Investment | Saigon Viendong vs. Sea Air Freight |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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