Correlation Between Transimex Transportation and South Books
Can any of the company-specific risk be diversified away by investing in both Transimex Transportation and South Books 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 South Books 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 South Books Educational, you can compare the effects of market volatilities on Transimex Transportation and South Books 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 South Books. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Transportation and South Books.
Diversification Opportunities for Transimex Transportation and South Books
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Transimex and South is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Transportation JSC and South Books Educational in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Books Educational 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 South Books. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Books Educational has no effect on the direction of Transimex Transportation i.e., Transimex Transportation and South Books go up and down completely randomly.
Pair Corralation between Transimex Transportation and South Books
Assuming the 90 days trading horizon Transimex Transportation is expected to generate 1.1 times less return on investment than South Books. But when comparing it to its historical volatility, Transimex Transportation JSC is 1.32 times less risky than South Books. It trades about 0.06 of its potential returns per unit of risk. South Books Educational is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,045,562 in South Books Educational on September 14, 2024 and sell it today you would earn a total of 384,438 from holding South Books Educational or generate 36.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.93% |
| Values | Daily Returns |
Transimex Transportation JSC vs. South Books Educational
Performance |
| Timeline |
| Transimex Transportation |
| South Books Educational |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Transimex Transportation and South Books Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transimex Transportation and South Books
The main advantage of trading using opposite Transimex Transportation and South Books positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Transportation position performs unexpectedly, South Books 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 South Books will offset losses from the drop in South Books' long position.| Transimex Transportation vs. Dong Nai Plastic | Transimex Transportation vs. TDG Global Investment | Transimex Transportation vs. Transport and Industry | Transimex Transportation vs. Vu Dang Investment |
| South Books vs. Transimex Transportation JSC | South Books vs. Petrovietnam Drilling Mud | South Books vs. Global Electrical Technology | South Books vs. PetroVietnam Drilling Well |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |