Correlation Between Tienlen Steel and Tien Giang
Can any of the company-specific risk be diversified away by investing in both Tienlen Steel and Tien Giang 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 Tien Giang 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 Tien Giang Investment, you can compare the effects of market volatilities on Tienlen Steel and Tien Giang 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 Tien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tienlen Steel and Tien Giang.
Diversification Opportunities for Tienlen Steel and Tien Giang
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tienlen and Tien is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tienlen Steel Corp and Tien Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Giang 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 Tien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Giang Investment has no effect on the direction of Tienlen Steel i.e., Tienlen Steel and Tien Giang go up and down completely randomly.
Pair Corralation between Tienlen Steel and Tien Giang
Assuming the 90 days trading horizon Tienlen Steel Corp is expected to under-perform the Tien Giang. In addition to that, Tienlen Steel is 1.54 times more volatile than Tien Giang Investment. It trades about -0.57 of its total potential returns per unit of risk. Tien Giang Investment is currently generating about -0.02 per unit of volatility. If you would invest 4,400,000 in Tien Giang Investment on August 28, 2024 and sell it today you would lose (20,000) from holding Tien Giang Investment or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tienlen Steel Corp vs. Tien Giang Investment
Performance |
| Timeline |
| Tienlen Steel Corp |
| Tien Giang Investment |
Tienlen Steel and Tien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tienlen Steel and Tien Giang
The main advantage of trading using opposite Tienlen Steel and Tien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tienlen Steel position performs unexpectedly, Tien Giang 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 Tien Giang will offset losses from the drop in Tien Giang's long position.| Tienlen Steel vs. FIT INVEST JSC | Tienlen Steel vs. Damsan JSC | Tienlen Steel vs. An Phat Plastic | Tienlen Steel vs. APG Securities Joint |
| Tien Giang vs. FIT INVEST JSC | Tien Giang vs. Damsan JSC | Tien Giang vs. An Phat Plastic | Tien Giang 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |