Correlation Between Transimex Saigon and Long Giang
Can any of the company-specific risk be diversified away by investing in both Transimex Saigon and Long 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 Transimex Saigon and Long Giang 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 Long Giang Investment, you can compare the effects of market volatilities on Transimex Saigon and Long 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 Transimex Saigon with a short position of Long Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Saigon and Long Giang.
Diversification Opportunities for Transimex Saigon and Long Giang
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Transimex and Long is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Saigon Corp and Long Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Giang Investment 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 Long Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Giang Investment has no effect on the direction of Transimex Saigon i.e., Transimex Saigon and Long Giang go up and down completely randomly.
Pair Corralation between Transimex Saigon and Long Giang
Assuming the 90 days trading horizon Transimex Saigon is expected to generate 29.82 times less return on investment than Long Giang. But when comparing it to its historical volatility, Transimex Saigon Corp is 1.03 times less risky than Long Giang. It trades about 0.0 of its potential returns per unit of risk. Long Giang Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 248,000 in Long Giang Investment on October 10, 2024 and sell it today you would earn a total of 2,000 from holding Long Giang Investment or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Transimex Saigon Corp vs. Long Giang Investment
Performance |
| Timeline |
| Transimex Saigon Corp |
| Long Giang Investment |
Transimex Saigon and Long Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transimex Saigon and Long Giang
The main advantage of trading using opposite Transimex Saigon and Long Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Saigon position performs unexpectedly, Long 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 Long Giang will offset losses from the drop in Long Giang's long position.| Transimex Saigon vs. Hanoi Plastics JSC | Transimex Saigon vs. Transport and Industry | Transimex Saigon vs. Dong Nai Plastic | Transimex Saigon vs. Sao Vang Rubber |
| Long Giang vs. FIT INVEST JSC | Long Giang vs. Damsan JSC | Long Giang vs. An Phat Plastic | Long 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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