Correlation Between Tay Ninh and LDG Investment
Can any of the company-specific risk be diversified away by investing in both Tay Ninh and LDG Investment 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 LDG Investment 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 LDG Investment JSC, you can compare the effects of market volatilities on Tay Ninh and LDG Investment 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 LDG Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tay Ninh and LDG Investment.
Diversification Opportunities for Tay Ninh and LDG Investment
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tay and LDG is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tay Ninh Rubber and LDG Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LDG Investment JSC 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 LDG Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LDG Investment JSC has no effect on the direction of Tay Ninh i.e., Tay Ninh and LDG Investment go up and down completely randomly.
Pair Corralation between Tay Ninh and LDG Investment
Assuming the 90 days trading horizon Tay Ninh Rubber is expected to generate 0.71 times more return on investment than LDG Investment. However, Tay Ninh Rubber is 1.4 times less risky than LDG Investment. It trades about 0.07 of its potential returns per unit of risk. LDG Investment JSC is currently generating about -0.05 per unit of risk. If you would invest 3,064,463 in Tay Ninh Rubber on October 16, 2024 and sell it today you would earn a total of 2,325,537 from holding Tay Ninh Rubber or generate 75.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.71% |
| Values | Daily Returns |
Tay Ninh Rubber vs. LDG Investment JSC
Performance |
| Timeline |
| Tay Ninh Rubber |
| LDG Investment JSC |
Tay Ninh and LDG Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tay Ninh and LDG Investment
The main advantage of trading using opposite Tay Ninh and LDG Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tay Ninh position performs unexpectedly, LDG Investment 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 LDG Investment will offset losses from the drop in LDG Investment's long position.| Tay Ninh vs. VietinBank Securities JSC | Tay Ninh vs. Pacific Petroleum Transportation | Tay Ninh vs. Transport and Industry | Tay Ninh vs. DOMESCO Medical Import |
| LDG Investment vs. IDJ FINANCIAL | LDG Investment vs. SCG Construction JSC | LDG Investment vs. Vietnam JSCmmercial Bank | LDG Investment vs. Vietnam Petroleum Transport |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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