Correlation Between Tng Investment and Viettel Construction
Can any of the company-specific risk be diversified away by investing in both Tng Investment and Viettel Construction 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 Viettel Construction 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 Viettel Construction JSC, you can compare the effects of market volatilities on Tng Investment and Viettel Construction 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 Viettel Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and Viettel Construction.
Diversification Opportunities for Tng Investment and Viettel Construction
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tng and Viettel is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And and Viettel Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viettel Construction JSC 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 Viettel Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viettel Construction JSC has no effect on the direction of Tng Investment i.e., Tng Investment and Viettel Construction go up and down completely randomly.
Pair Corralation between Tng Investment and Viettel Construction
Assuming the 90 days trading horizon Tng Investment is expected to generate 1.1 times less return on investment than Viettel Construction. But when comparing it to its historical volatility, Tng Investment And is 1.14 times less risky than Viettel Construction. It trades about 0.08 of its potential returns per unit of risk. Viettel Construction JSC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,300,376 in Viettel Construction JSC on September 12, 2024 and sell it today you would earn a total of 4,019,624 from holding Viettel Construction JSC or generate 48.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Tng Investment And vs. Viettel Construction JSC
Performance |
| Timeline |
| Tng Investment And |
| Viettel Construction JSC |
Tng Investment and Viettel Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tng Investment and Viettel Construction
The main advantage of trading using opposite Tng Investment and Viettel Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tng Investment position performs unexpectedly, Viettel Construction 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 Viettel Construction will offset losses from the drop in Viettel Construction's long position.| Tng Investment vs. FIT INVEST JSC | Tng Investment vs. Damsan JSC | Tng Investment vs. An Phat Plastic | Tng Investment vs. Alphanam ME |
| Viettel Construction vs. FIT INVEST JSC | Viettel Construction vs. Damsan JSC | Viettel Construction vs. An Phat Plastic | Viettel Construction 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 Stocks Directory module to find actively traded stocks across global markets.
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