Correlation Between Transimex Transportation and La Hien
Can any of the company-specific risk be diversified away by investing in both Transimex Transportation and La Hien 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 Transimex Transportation and La Hien into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transimex Transportation JSC and La Hien Cement, you can compare the effects of market volatilities on Transimex Transportation and La Hien 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 Transimex Transportation with a short position of La Hien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Transportation and La Hien.
Diversification Opportunities for Transimex Transportation and La Hien
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transimex and CLH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Transportation JSC and La Hien Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Hien Cement and Transimex Transportation 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 Transimex Transportation JSC are associated (or correlated) with La Hien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Hien Cement has no effect on the direction of Transimex Transportation i.e., Transimex Transportation and La Hien go up and down completely randomly.
Pair Corralation between Transimex Transportation and La Hien
If you would invest 0.00 in La Hien Cement on October 25, 2024 and sell it today you would earn a total of 0.00 from holding La Hien Cement or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Transimex Transportation JSC vs. La Hien Cement
Performance |
| Timeline |
| Transimex Transportation |
| La Hien Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Transimex Transportation and La Hien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transimex Transportation and La Hien
The main advantage of trading using opposite Transimex Transportation and La Hien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Transportation position performs unexpectedly, La Hien 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 La Hien will offset losses from the drop in La Hien's long position.| Transimex Transportation vs. Ba Ria Thermal | Transimex Transportation vs. CEO Group JSC | Transimex Transportation vs. Pha Le Plastics | Transimex Transportation vs. Tay Ninh Rubber |
| La Hien vs. Century Synthetic Fiber | La Hien vs. Da Nang Construction | La Hien vs. Asia Commercial Bank | La Hien vs. Taseco Air 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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