Correlation Between Tien Giang and TDG Global
Can any of the company-specific risk be diversified away by investing in both Tien Giang and TDG Global 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 TDG Global 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 TDG Global Investment, you can compare the effects of market volatilities on Tien Giang and TDG Global 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 TDG Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Giang and TDG Global.
Diversification Opportunities for Tien Giang and TDG Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tien and TDG is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tien Giang Investment and TDG Global Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDG Global 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 TDG Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDG Global Investment has no effect on the direction of Tien Giang i.e., Tien Giang and TDG Global go up and down completely randomly.
Pair Corralation between Tien Giang and TDG Global
Assuming the 90 days trading horizon Tien Giang Investment is expected to generate 1.04 times more return on investment than TDG Global. However, Tien Giang is 1.04 times more volatile than TDG Global Investment. It trades about -0.13 of its potential returns per unit of risk. TDG Global Investment is currently generating about -0.15 per unit of risk. If you would invest 6,017,998 in Tien Giang Investment on January 11, 2025 and sell it today you would lose (707,998) from holding Tien Giang Investment or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tien Giang Investment vs. TDG Global Investment
Performance |
| Timeline |
| Tien Giang Investment |
| TDG Global Investment |
Tien Giang and TDG Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Giang and TDG Global
The main advantage of trading using opposite Tien Giang and TDG Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Giang position performs unexpectedly, TDG Global 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 TDG Global will offset losses from the drop in TDG Global's long position.| Tien Giang vs. 577 Investment Corp | Tien Giang vs. 1369 Construction JSC | Tien Giang vs. HUD1 Investment and | Tien Giang vs. Binhthuan Agriculture Services |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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