Correlation Between Tay Ninh and Atesco Industrial
Can any of the company-specific risk be diversified away by investing in both Tay Ninh and Atesco Industrial 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 Tay Ninh and Atesco Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tay Ninh Rubber and Atesco Industrial Cartering, you can compare the effects of market volatilities on Tay Ninh and Atesco Industrial 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 Tay Ninh with a short position of Atesco Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tay Ninh and Atesco Industrial.
Diversification Opportunities for Tay Ninh and Atesco Industrial
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tay and Atesco is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tay Ninh Rubber and Atesco Industrial Cartering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atesco Industrial and Tay Ninh 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 Tay Ninh Rubber are associated (or correlated) with Atesco Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atesco Industrial has no effect on the direction of Tay Ninh i.e., Tay Ninh and Atesco Industrial go up and down completely randomly.
Pair Corralation between Tay Ninh and Atesco Industrial
Assuming the 90 days trading horizon Tay Ninh Rubber is expected to generate 0.37 times more return on investment than Atesco Industrial. However, Tay Ninh Rubber is 2.72 times less risky than Atesco Industrial. It trades about 0.44 of its potential returns per unit of risk. Atesco Industrial Cartering is currently generating about -0.23 per unit of risk. If you would invest 5,490,000 in Tay Ninh Rubber on October 29, 2024 and sell it today you would earn a total of 1,540,000 from holding Tay Ninh Rubber or generate 28.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.0% |
| Values | Daily Returns |
Tay Ninh Rubber vs. Atesco Industrial Cartering
Performance |
| Timeline |
| Tay Ninh Rubber |
| Atesco Industrial |
Tay Ninh and Atesco Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tay Ninh and Atesco Industrial
The main advantage of trading using opposite Tay Ninh and Atesco Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tay Ninh position performs unexpectedly, Atesco Industrial 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 Atesco Industrial will offset losses from the drop in Atesco Industrial's long position.| Tay Ninh vs. FIT INVEST JSC | Tay Ninh vs. Damsan JSC | Tay Ninh vs. An Phat Plastic | Tay Ninh vs. APG Securities Joint |
| Atesco Industrial vs. Binh Duong Construction | Atesco Industrial vs. DOMESCO Medical Import | Atesco Industrial vs. Tri Viet Management | Atesco Industrial vs. Elcom Technology Communications |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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