Correlation Between TNS Holdings and Phuoc Hoa
Can any of the company-specific risk be diversified away by investing in both TNS Holdings and Phuoc Hoa 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 TNS Holdings and Phuoc Hoa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TNS Holdings JSC and Phuoc Hoa Rubber, you can compare the effects of market volatilities on TNS Holdings and Phuoc Hoa 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 TNS Holdings with a short position of Phuoc Hoa. Check out your portfolio center. Please also check ongoing floating volatility patterns of TNS Holdings and Phuoc Hoa.
Diversification Opportunities for TNS Holdings and Phuoc Hoa
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TNS and Phuoc is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding TNS Holdings JSC and Phuoc Hoa Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phuoc Hoa Rubber and TNS Holdings 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 TNS Holdings JSC are associated (or correlated) with Phuoc Hoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phuoc Hoa Rubber has no effect on the direction of TNS Holdings i.e., TNS Holdings and Phuoc Hoa go up and down completely randomly.
Pair Corralation between TNS Holdings and Phuoc Hoa
Assuming the 90 days trading horizon TNS Holdings is expected to generate 5.55 times less return on investment than Phuoc Hoa. In addition to that, TNS Holdings is 1.33 times more volatile than Phuoc Hoa Rubber. It trades about 0.01 of its total potential returns per unit of risk. Phuoc Hoa Rubber is currently generating about 0.07 per unit of volatility. If you would invest 5,570,000 in Phuoc Hoa Rubber on August 30, 2024 and sell it today you would earn a total of 110,000 from holding Phuoc Hoa Rubber or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 73.91% |
| Values | Daily Returns |
TNS Holdings JSC vs. Phuoc Hoa Rubber
Performance |
| Timeline |
| TNS Holdings JSC |
| Phuoc Hoa Rubber |
TNS Holdings and Phuoc Hoa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TNS Holdings and Phuoc Hoa
The main advantage of trading using opposite TNS Holdings and Phuoc Hoa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TNS Holdings position performs unexpectedly, Phuoc Hoa 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 Phuoc Hoa will offset losses from the drop in Phuoc Hoa's long position.| TNS Holdings vs. Phuoc Hoa Rubber | TNS Holdings vs. Picomat Plastic JSC | TNS Holdings vs. Tien Phong Plastic | TNS Holdings vs. FPT Digital Retail |
| Phuoc Hoa vs. FIT INVEST JSC | Phuoc Hoa vs. Damsan JSC | Phuoc Hoa vs. An Phat Plastic | Phuoc Hoa vs. Alphanam ME |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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