Correlation Between Tng Investment and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Tng Investment and FIT INVEST 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 FIT INVEST 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 FIT INVEST JSC, you can compare the effects of market volatilities on Tng Investment and FIT INVEST 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 FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and FIT INVEST.
Diversification Opportunities for Tng Investment and FIT INVEST
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tng and FIT is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And and FIT INVEST JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIT INVEST 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 FIT INVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIT INVEST JSC has no effect on the direction of Tng Investment i.e., Tng Investment and FIT INVEST go up and down completely randomly.
Pair Corralation between Tng Investment and FIT INVEST
Assuming the 90 days trading horizon Tng Investment And is expected to generate 1.06 times more return on investment than FIT INVEST. However, Tng Investment is 1.06 times more volatile than FIT INVEST JSC. It trades about 0.06 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.01 per unit of risk. If you would invest 1,534,184 in Tng Investment And on August 29, 2024 and sell it today you would earn a total of 895,816 from holding Tng Investment And or generate 58.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tng Investment And vs. FIT INVEST JSC
Performance |
| Timeline |
| Tng Investment And |
| FIT INVEST JSC |
Tng Investment and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tng Investment and FIT INVEST
The main advantage of trading using opposite Tng Investment and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tng Investment position performs unexpectedly, FIT INVEST 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 FIT INVEST will offset losses from the drop in FIT INVEST's long position.| Tng Investment vs. FIT INVEST JSC | Tng Investment vs. Damsan JSC | Tng Investment vs. An Phat Plastic | Tng Investment vs. APG Securities Joint |
| FIT INVEST vs. Damsan JSC | FIT INVEST vs. An Phat Plastic | FIT INVEST vs. APG Securities Joint | FIT INVEST vs. Binhthuan Agriculture Services |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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