Correlation Between Tng Investment and Binhthuan Agriculture
Can any of the company-specific risk be diversified away by investing in both Tng Investment and Binhthuan Agriculture 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 Tng Investment and Binhthuan Agriculture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tng Investment And and Binhthuan Agriculture Services, you can compare the effects of market volatilities on Tng Investment and Binhthuan Agriculture 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 Tng Investment with a short position of Binhthuan Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and Binhthuan Agriculture.
Diversification Opportunities for Tng Investment and Binhthuan Agriculture
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tng and Binhthuan is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And and Binhthuan Agriculture Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binhthuan Agriculture and Tng Investment 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 Tng Investment And are associated (or correlated) with Binhthuan Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binhthuan Agriculture has no effect on the direction of Tng Investment i.e., Tng Investment and Binhthuan Agriculture go up and down completely randomly.
Pair Corralation between Tng Investment and Binhthuan Agriculture
Assuming the 90 days trading horizon Tng Investment And is expected to generate 0.52 times more return on investment than Binhthuan Agriculture. However, Tng Investment And is 1.91 times less risky than Binhthuan Agriculture. It trades about -0.11 of its potential returns per unit of risk. Binhthuan Agriculture Services is currently generating about -0.23 per unit of risk. If you would invest 2,477,468 in Tng Investment And on October 31, 2024 and sell it today you would lose (77,468) from holding Tng Investment And or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tng Investment And vs. Binhthuan Agriculture Services
Performance |
| Timeline |
| Tng Investment And |
| Binhthuan Agriculture |
Tng Investment and Binhthuan Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tng Investment and Binhthuan Agriculture
The main advantage of trading using opposite Tng Investment and Binhthuan Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tng Investment position performs unexpectedly, Binhthuan Agriculture 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 Binhthuan Agriculture will offset losses from the drop in Binhthuan Agriculture's long position.| Tng Investment vs. Post and Telecommunications | Tng Investment vs. VTC Telecommunications JSC | Tng Investment vs. Binh Duong Construction | Tng Investment vs. DIC Holdings Construction |
| Binhthuan Agriculture vs. PetroVietnam Transportation Corp | Binhthuan Agriculture vs. Tng Investment And | Binhthuan Agriculture vs. HVC Investment and | Binhthuan Agriculture vs. Duong Hieu Trading |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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