Correlation Between Tng Investment and Hanoi Plastics
Can any of the company-specific risk be diversified away by investing in both Tng Investment and Hanoi Plastics 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 Hanoi Plastics 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 Hanoi Plastics JSC, you can compare the effects of market volatilities on Tng Investment and Hanoi Plastics 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 Hanoi Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and Hanoi Plastics.
Diversification Opportunities for Tng Investment and Hanoi Plastics
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tng and Hanoi is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And and Hanoi Plastics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Plastics 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 Hanoi Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Plastics JSC has no effect on the direction of Tng Investment i.e., Tng Investment and Hanoi Plastics go up and down completely randomly.
Pair Corralation between Tng Investment and Hanoi Plastics
Assuming the 90 days trading horizon Tng Investment And is expected to generate 1.34 times more return on investment than Hanoi Plastics. However, Tng Investment is 1.34 times more volatile than Hanoi Plastics JSC. It trades about -0.04 of its potential returns per unit of risk. Hanoi Plastics JSC is currently generating about -0.07 per unit of risk. If you would invest 2,438,143 in Tng Investment And on October 17, 2024 and sell it today you would lose (68,143) from holding Tng Investment And or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tng Investment And vs. Hanoi Plastics JSC
Performance |
| Timeline |
| Tng Investment And |
| Hanoi Plastics JSC |
Tng Investment and Hanoi Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tng Investment and Hanoi Plastics
The main advantage of trading using opposite Tng Investment and Hanoi Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tng Investment position performs unexpectedly, Hanoi Plastics 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 Hanoi Plastics will offset losses from the drop in Hanoi Plastics' long position.| Tng Investment vs. Phuoc Hoa Rubber | Tng Investment vs. Vina2 Investment and | Tng Investment vs. South Basic Chemicals | Tng Investment vs. MST Investment JSC |
| Hanoi Plastics vs. Construction And Investment | Hanoi Plastics vs. TDT Investment and | Hanoi Plastics vs. SMC Investment Trading | Hanoi Plastics vs. Tng Investment And |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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