Correlation Between Thong Nhat and Masan Group
Can any of the company-specific risk be diversified away by investing in both Thong Nhat and Masan Group 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 Thong Nhat and Masan Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thong Nhat Rubber and Masan Group Corp, you can compare the effects of market volatilities on Thong Nhat and Masan Group 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 Thong Nhat with a short position of Masan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thong Nhat and Masan Group.
Diversification Opportunities for Thong Nhat and Masan Group
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thong and Masan is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Thong Nhat Rubber and Masan Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masan Group Corp and Thong Nhat 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 Thong Nhat Rubber are associated (or correlated) with Masan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masan Group Corp has no effect on the direction of Thong Nhat i.e., Thong Nhat and Masan Group go up and down completely randomly.
Pair Corralation between Thong Nhat and Masan Group
Assuming the 90 days trading horizon Thong Nhat Rubber is expected to under-perform the Masan Group. In addition to that, Thong Nhat is 3.36 times more volatile than Masan Group Corp. It trades about -0.03 of its total potential returns per unit of risk. Masan Group Corp is currently generating about -0.04 per unit of volatility. If you would invest 7,510,000 in Masan Group Corp on September 12, 2024 and sell it today you would lose (240,000) from holding Masan Group Corp or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.94% |
| Values | Daily Returns |
Thong Nhat Rubber vs. Masan Group Corp
Performance |
| Timeline |
| Thong Nhat Rubber |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Masan Group Corp |
Thong Nhat and Masan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thong Nhat and Masan Group
The main advantage of trading using opposite Thong Nhat and Masan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thong Nhat position performs unexpectedly, Masan Group 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 Masan Group will offset losses from the drop in Masan Group's long position.| Thong Nhat vs. Mobile World Investment | Thong Nhat vs. Danang Education Investment | Thong Nhat vs. Petrolimex Information Technology | Thong Nhat vs. Nafoods Group JSC |
| Masan Group vs. Viet Thanh Plastic | Masan Group vs. Phuoc Hoa Rubber | Masan Group vs. Saigon Viendong Technology | Masan Group vs. Hanoi Plastics JSC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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