Correlation Between Tin Nghia and Construction
Can any of the company-specific risk be diversified away by investing in both Tin Nghia and Construction 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 Construction 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 Construction And Investment, you can compare the effects of market volatilities on Tin Nghia and Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tin Nghia and Construction.
Diversification Opportunities for Tin Nghia and Construction
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tin and Construction is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tin Nghia Industrial and Construction And Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Construction And Inv 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Construction And Inv has no effect on the direction of Tin Nghia i.e., Tin Nghia and Construction go up and down completely randomly.
Pair Corralation between Tin Nghia and Construction
Assuming the 90 days trading horizon Tin Nghia Industrial is expected to under-perform the Construction. But the stock apears to be less risky and, when comparing its historical volatility, Tin Nghia Industrial is 1.13 times less risky than Construction. The stock trades about -0.11 of its potential returns per unit of risk. The Construction And Investment is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,610,000 in Construction And Investment on August 25, 2024 and sell it today you would earn a total of 330,000 from holding Construction And Investment or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tin Nghia Industrial vs. Construction And Investment
Performance |
| Timeline |
| Tin Nghia Industrial |
| Construction And Inv |
Tin Nghia and Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tin Nghia and Construction
The main advantage of trading using opposite Tin Nghia and Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tin Nghia position performs unexpectedly, Construction 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 Construction will offset losses from the drop in Construction'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 |
| Construction vs. Hochiminh City Metal | Construction vs. Ha Long Investment | Construction vs. Tin Nghia Industrial | Construction vs. HUD1 Investment and |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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