Correlation Between Tin Nghia and Post
Can any of the company-specific risk be diversified away by investing in both Tin Nghia and Post 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 Post 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 Post and Telecommunications, you can compare the effects of market volatilities on Tin Nghia and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tin Nghia and Post.
Diversification Opportunities for Tin Nghia and Post
Poor diversification
The 3 months correlation between Tin and Post is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tin Nghia Industrial and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Tin Nghia i.e., Tin Nghia and Post go up and down completely randomly.
Pair Corralation between Tin Nghia and Post
Assuming the 90 days trading horizon Tin Nghia Industrial is expected to under-perform the Post. But the stock apears to be less risky and, when comparing its historical volatility, Tin Nghia Industrial is 1.68 times less risky than Post. The stock trades about -0.06 of its potential returns per unit of risk. The Post and Telecommunications is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 467,000 in Post and Telecommunications on August 27, 2024 and sell it today you would lose (7,000) from holding Post and Telecommunications or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tin Nghia Industrial vs. Post and Telecommunications
Performance |
| Timeline |
| Tin Nghia Industrial |
| Post and Telecommuni |
Tin Nghia and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tin Nghia and Post
The main advantage of trading using opposite Tin Nghia and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tin Nghia position performs unexpectedly, Post 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 Post will offset losses from the drop in Post'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 |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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