Correlation Between Tin Nghia and Ha Long
Can any of the company-specific risk be diversified away by investing in both Tin Nghia and Ha Long 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 Ha Long 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 Ha Long Investment, you can compare the effects of market volatilities on Tin Nghia and Ha Long 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 Ha Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tin Nghia and Ha Long.
Diversification Opportunities for Tin Nghia and Ha Long
Weak diversification
The 3 months correlation between Tin and HID is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Tin Nghia Industrial and Ha Long Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ha Long Investment 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 Ha Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ha Long Investment has no effect on the direction of Tin Nghia i.e., Tin Nghia and Ha Long go up and down completely randomly.
Pair Corralation between Tin Nghia and Ha Long
Assuming the 90 days trading horizon Tin Nghia Industrial is expected to generate 1.19 times more return on investment than Ha Long. However, Tin Nghia is 1.19 times more volatile than Ha Long Investment. It trades about 0.01 of its potential returns per unit of risk. Ha Long Investment is currently generating about -0.02 per unit of risk. If you would invest 2,144,250 in Tin Nghia Industrial on August 25, 2024 and sell it today you would earn a total of 25,750 from holding Tin Nghia Industrial or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tin Nghia Industrial vs. Ha Long Investment
Performance |
| Timeline |
| Tin Nghia Industrial |
| Ha Long Investment |
Tin Nghia and Ha Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tin Nghia and Ha Long
The main advantage of trading using opposite Tin Nghia and Ha Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tin Nghia position performs unexpectedly, Ha Long 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 Long will offset losses from the drop in Ha Long's long position.| Tin Nghia vs. Binh Duong Trade | Tin Nghia vs. Vietnam National Reinsurance | Tin Nghia vs. BIDV Insurance Corp | Tin Nghia vs. Techno Agricultural Supplying |
| Ha Long vs. Saigon Beer Alcohol | Ha Long vs. Innovative Technology Development | Ha Long vs. Vinhomes JSC | Ha Long vs. Petrovietnam Drilling Mud |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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