Correlation Between Transimex Transportation and Duc Thanh
Can any of the company-specific risk be diversified away by investing in both Transimex Transportation and Duc Thanh 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 Duc Thanh 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 Duc Thanh Wood, you can compare the effects of market volatilities on Transimex Transportation and Duc Thanh 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 Duc Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Transportation and Duc Thanh.
Diversification Opportunities for Transimex Transportation and Duc Thanh
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Transimex and Duc is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Transportation JSC and Duc Thanh Wood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duc Thanh Wood 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 Duc Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duc Thanh Wood has no effect on the direction of Transimex Transportation i.e., Transimex Transportation and Duc Thanh go up and down completely randomly.
Pair Corralation between Transimex Transportation and Duc Thanh
Assuming the 90 days trading horizon Transimex Transportation JSC is expected to generate 1.89 times more return on investment than Duc Thanh. However, Transimex Transportation is 1.89 times more volatile than Duc Thanh Wood. It trades about 0.07 of its potential returns per unit of risk. Duc Thanh Wood is currently generating about 0.01 per unit of risk. If you would invest 950,495 in Transimex Transportation JSC on August 25, 2024 and sell it today you would earn a total of 779,505 from holding Transimex Transportation JSC or generate 82.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.81% |
| Values | Daily Returns |
Transimex Transportation JSC vs. Duc Thanh Wood
Performance |
| Timeline |
| Transimex Transportation |
| Duc Thanh Wood |
Transimex Transportation and Duc Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transimex Transportation and Duc Thanh
The main advantage of trading using opposite Transimex Transportation and Duc Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Transportation position performs unexpectedly, Duc Thanh 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 Duc Thanh will offset losses from the drop in Duc Thanh's long position.| Transimex Transportation vs. Idico JSC | Transimex Transportation vs. Hochiminh City Metal | Transimex Transportation vs. Atesco Industrial Cartering | Transimex Transportation vs. Danang Education Investment |
| Duc Thanh vs. FIT INVEST JSC | Duc Thanh vs. Damsan JSC | Duc Thanh vs. An Phat Plastic | Duc Thanh vs. APG Securities Joint |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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