Correlation Between Tin Nghia and Duong Hieu
Can any of the company-specific risk be diversified away by investing in both Tin Nghia and Duong Hieu 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 Tin Nghia and Duong Hieu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tin Nghia Industrial and Duong Hieu Trading, you can compare the effects of market volatilities on Tin Nghia and Duong Hieu 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 Tin Nghia with a short position of Duong Hieu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tin Nghia and Duong Hieu.
Diversification Opportunities for Tin Nghia and Duong Hieu
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tin and Duong is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Tin Nghia Industrial and Duong Hieu Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duong Hieu Trading and Tin Nghia 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 Tin Nghia Industrial are associated (or correlated) with Duong Hieu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duong Hieu Trading has no effect on the direction of Tin Nghia i.e., Tin Nghia and Duong Hieu go up and down completely randomly.
Pair Corralation between Tin Nghia and Duong Hieu
Assuming the 90 days trading horizon Tin Nghia Industrial is expected to under-perform the Duong Hieu. But the stock apears to be less risky and, when comparing its historical volatility, Tin Nghia Industrial is 3.57 times less risky than Duong Hieu. The stock trades about -0.37 of its potential returns per unit of risk. The Duong Hieu Trading is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 830,000 in Duong Hieu Trading on October 25, 2024 and sell it today you would lose (8,000) from holding Duong Hieu Trading or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tin Nghia Industrial vs. Duong Hieu Trading
Performance |
| Timeline |
| Tin Nghia Industrial |
| Duong Hieu Trading |
Tin Nghia and Duong Hieu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tin Nghia and Duong Hieu
The main advantage of trading using opposite Tin Nghia and Duong Hieu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tin Nghia position performs unexpectedly, Duong Hieu 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 Duong Hieu will offset losses from the drop in Duong Hieu's long position.| Tin Nghia vs. FIT INVEST JSC | Tin Nghia vs. Damsan JSC | Tin Nghia vs. An Phat Plastic | Tin Nghia vs. APG Securities Joint |
| Duong Hieu vs. FIT INVEST JSC | Duong Hieu vs. Damsan JSC | Duong Hieu vs. An Phat Plastic | Duong Hieu vs. APG Securities Joint |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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