Correlation Between Tng Investment and Alphanam
Can any of the company-specific risk be diversified away by investing in both Tng Investment and Alphanam 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 Alphanam 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 Alphanam ME, you can compare the effects of market volatilities on Tng Investment and Alphanam 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 Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and Alphanam.
Diversification Opportunities for Tng Investment and Alphanam
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tng and Alphanam is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME 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 Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of Tng Investment i.e., Tng Investment and Alphanam go up and down completely randomly.
Pair Corralation between Tng Investment and Alphanam
Assuming the 90 days trading horizon Tng Investment And is expected to generate 0.54 times more return on investment than Alphanam. However, Tng Investment And is 1.87 times less risky than Alphanam. It trades about 0.06 of its potential returns per unit of risk. Alphanam ME is currently generating about -0.1 per unit of risk. If you would invest 1,853,867 in Tng Investment And on November 4, 2024 and sell it today you would earn a total of 546,133 from holding Tng Investment And or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 48.13% |
| Values | Daily Returns |
Tng Investment And vs. Alphanam ME
Performance |
| Timeline |
| Tng Investment And |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tng Investment and Alphanam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tng Investment and Alphanam
The main advantage of trading using opposite Tng Investment and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tng Investment position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.| Tng Investment vs. Phuoc Hoa Rubber | Tng Investment vs. Vincom Retail JSC | Tng Investment vs. Ben Thanh Rubber | Tng Investment vs. Tien Phong Plastic |
| Alphanam vs. SCG Construction JSC | Alphanam vs. Investment And Construction | Alphanam vs. Fecon Mining JSC | Alphanam vs. Ba Ria Thermal |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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