Correlation Between Thu Duc and Techno Agricultural
Can any of the company-specific risk be diversified away by investing in both Thu Duc and Techno Agricultural 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 Thu Duc and Techno Agricultural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thu Duc TradingImport and Techno Agricultural Supplying, you can compare the effects of market volatilities on Thu Duc and Techno Agricultural 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 Thu Duc with a short position of Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thu Duc and Techno Agricultural.
Diversification Opportunities for Thu Duc and Techno Agricultural
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thu and Techno is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Thu Duc TradingImport and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Agricultural and Thu Duc 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 Thu Duc TradingImport are associated (or correlated) with Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of Thu Duc i.e., Thu Duc and Techno Agricultural go up and down completely randomly.
Pair Corralation between Thu Duc and Techno Agricultural
Assuming the 90 days trading horizon Thu Duc TradingImport is expected to generate 1.04 times more return on investment than Techno Agricultural. However, Thu Duc is 1.04 times more volatile than Techno Agricultural Supplying. It trades about -0.03 of its potential returns per unit of risk. Techno Agricultural Supplying is currently generating about -0.03 per unit of risk. If you would invest 1,070,864 in Thu Duc TradingImport on October 16, 2024 and sell it today you would lose (210,864) from holding Thu Duc TradingImport or give up 19.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 46.06% |
| Values | Daily Returns |
Thu Duc TradingImport vs. Techno Agricultural Supplying
Performance |
| Timeline |
| Thu Duc TradingImport |
| Techno Agricultural |
Thu Duc and Techno Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thu Duc and Techno Agricultural
The main advantage of trading using opposite Thu Duc and Techno Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thu Duc position performs unexpectedly, Techno Agricultural 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 Techno Agricultural will offset losses from the drop in Techno Agricultural's long position.| Thu Duc vs. Saigon Viendong Technology | Thu Duc vs. Truong Thanh Furniture | Thu Duc vs. Elcom Technology Communications | Thu Duc vs. Pha Lai Thermal |
| Techno Agricultural vs. Danang Rubber JSC | Techno Agricultural vs. Development Investment Construction | Techno Agricultural vs. Thu Duc TradingImport | Techno Agricultural vs. Tay Ninh Rubber |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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