Correlation Between Transimex Saigon and AgriBank Securities
Can any of the company-specific risk be diversified away by investing in both Transimex Saigon and AgriBank Securities 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 Transimex Saigon and AgriBank Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transimex Saigon Corp and AgriBank Securities JSC, you can compare the effects of market volatilities on Transimex Saigon and AgriBank Securities 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 Transimex Saigon with a short position of AgriBank Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Saigon and AgriBank Securities.
Diversification Opportunities for Transimex Saigon and AgriBank Securities
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Transimex and AgriBank is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Saigon Corp and AgriBank Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriBank Securities JSC and Transimex Saigon 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 Transimex Saigon Corp are associated (or correlated) with AgriBank Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriBank Securities JSC has no effect on the direction of Transimex Saigon i.e., Transimex Saigon and AgriBank Securities go up and down completely randomly.
Pair Corralation between Transimex Saigon and AgriBank Securities
Assuming the 90 days trading horizon Transimex Saigon Corp is expected to generate 1.09 times more return on investment than AgriBank Securities. However, Transimex Saigon is 1.09 times more volatile than AgriBank Securities JSC. It trades about 0.08 of its potential returns per unit of risk. AgriBank Securities JSC is currently generating about -0.2 per unit of risk. If you would invest 4,200,000 in Transimex Saigon Corp on November 3, 2024 and sell it today you would earn a total of 50,000 from holding Transimex Saigon Corp or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Transimex Saigon Corp vs. AgriBank Securities JSC
Performance |
| Timeline |
| Transimex Saigon Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AgriBank Securities JSC |
Transimex Saigon and AgriBank Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transimex Saigon and AgriBank Securities
The main advantage of trading using opposite Transimex Saigon and AgriBank Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Saigon position performs unexpectedly, AgriBank Securities 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 AgriBank Securities will offset losses from the drop in AgriBank Securities' long position.| Transimex Saigon vs. Binh Duong Trade | Transimex Saigon vs. Southern Rubber Industry | Transimex Saigon vs. AgriBank Securities JSC | Transimex Saigon vs. Pha Le Plastics |
| AgriBank Securities vs. FIT INVEST JSC | AgriBank Securities vs. Damsan JSC | AgriBank Securities vs. An Phat Plastic | AgriBank Securities 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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