Correlation Between Tin Nghia and Saigon Beer
Can any of the company-specific risk be diversified away by investing in both Tin Nghia and Saigon Beer 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 Saigon Beer 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 Saigon Beer Alcohol, you can compare the effects of market volatilities on Tin Nghia and Saigon Beer 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 Saigon Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tin Nghia and Saigon Beer.
Diversification Opportunities for Tin Nghia and Saigon Beer
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tin and Saigon is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tin Nghia Industrial and Saigon Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Beer Alcohol 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 Saigon Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Beer Alcohol has no effect on the direction of Tin Nghia i.e., Tin Nghia and Saigon Beer go up and down completely randomly.
Pair Corralation between Tin Nghia and Saigon Beer
Assuming the 90 days trading horizon Tin Nghia Industrial is expected to generate 0.92 times more return on investment than Saigon Beer. However, Tin Nghia Industrial is 1.09 times less risky than Saigon Beer. It trades about -0.14 of its potential returns per unit of risk. Saigon Beer Alcohol is currently generating about -0.22 per unit of risk. If you would invest 2,159,400 in Tin Nghia Industrial on October 12, 2024 and sell it today you would lose (44,400) from holding Tin Nghia Industrial or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tin Nghia Industrial vs. Saigon Beer Alcohol
Performance |
| Timeline |
| Tin Nghia Industrial |
| Saigon Beer Alcohol |
Tin Nghia and Saigon Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tin Nghia and Saigon Beer
The main advantage of trading using opposite Tin Nghia and Saigon Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tin Nghia position performs unexpectedly, Saigon Beer 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 Saigon Beer will offset losses from the drop in Saigon Beer'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 |
| Saigon Beer vs. Saigon Telecommunication Technologies | Saigon Beer vs. Vietnam Airlines JSC | Saigon Beer vs. Tin Nghia Industrial | Saigon Beer vs. Dinhvu Port Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
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