Correlation Between Tienlen Steel and Ha Long
Can any of the company-specific risk be diversified away by investing in both Tienlen Steel 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 Tienlen Steel and Ha Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tienlen Steel Corp and Ha Long Investment, you can compare the effects of market volatilities on Tienlen Steel 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 Tienlen Steel with a short position of Ha Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tienlen Steel and Ha Long.
Diversification Opportunities for Tienlen Steel and Ha Long
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tienlen and HID is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Tienlen Steel Corp 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 Tienlen Steel 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 Tienlen Steel Corp 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 Tienlen Steel i.e., Tienlen Steel and Ha Long go up and down completely randomly.
Pair Corralation between Tienlen Steel and Ha Long
Assuming the 90 days trading horizon Tienlen Steel Corp is expected to under-perform the Ha Long. In addition to that, Tienlen Steel is 2.1 times more volatile than Ha Long Investment. It trades about -0.41 of its total potential returns per unit of risk. Ha Long Investment is currently generating about -0.17 per unit of volatility. If you would invest 273,000 in Ha Long Investment on September 2, 2024 and sell it today you would lose (7,000) from holding Ha Long Investment or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tienlen Steel Corp vs. Ha Long Investment
Performance |
| Timeline |
| Tienlen Steel Corp |
| Ha Long Investment |
Tienlen Steel and Ha Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tienlen Steel and Ha Long
The main advantage of trading using opposite Tienlen Steel and Ha Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tienlen Steel 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.| Tienlen Steel vs. FIT INVEST JSC | Tienlen Steel vs. Damsan JSC | Tienlen Steel vs. An Phat Plastic | Tienlen Steel vs. Alphanam ME |
| Ha Long vs. Thanh Dat Investment | Ha Long vs. Dinhvu Port Investment | Ha Long vs. Vu Dang Investment | Ha Long vs. Hai An Transport |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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