Correlation Between Tay Ninh and Hung Hau
Can any of the company-specific risk be diversified away by investing in both Tay Ninh and Hung Hau 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 Hung Hau 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 Hung Hau Agricultural, you can compare the effects of market volatilities on Tay Ninh and Hung Hau 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 Hung Hau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tay Ninh and Hung Hau.
Diversification Opportunities for Tay Ninh and Hung Hau
Very weak diversification
The 3 months correlation between Tay and Hung is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Tay Ninh Rubber and Hung Hau Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hung Hau Agricultural 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 Hung Hau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hung Hau Agricultural has no effect on the direction of Tay Ninh i.e., Tay Ninh and Hung Hau go up and down completely randomly.
Pair Corralation between Tay Ninh and Hung Hau
Assuming the 90 days trading horizon Tay Ninh Rubber is expected to generate 0.6 times more return on investment than Hung Hau. However, Tay Ninh Rubber is 1.66 times less risky than Hung Hau. It trades about 0.34 of its potential returns per unit of risk. Hung Hau Agricultural is currently generating about 0.05 per unit of risk. If you would invest 4,205,000 in Tay Ninh Rubber on November 8, 2024 and sell it today you would earn a total of 3,085,000 from holding Tay Ninh Rubber or generate 73.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 40.68% |
| Values | Daily Returns |
Tay Ninh Rubber vs. Hung Hau Agricultural
Performance |
| Timeline |
| Tay Ninh Rubber |
| Hung Hau Agricultural |
Tay Ninh and Hung Hau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tay Ninh and Hung Hau
The main advantage of trading using opposite Tay Ninh and Hung Hau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tay Ninh position performs unexpectedly, Hung Hau 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 Hung Hau will offset losses from the drop in Hung Hau's long position.| Tay Ninh vs. FPT Digital Retail | Tay Ninh vs. BIDV Insurance Corp | Tay Ninh vs. VTC Telecommunications JSC | Tay Ninh vs. PetroVietnam Transportation Corp |
| Hung Hau vs. TDG Global Investment | Hung Hau vs. Tien Giang Investment | Hung Hau vs. Vincom Retail JSC | Hung Hau vs. TDT Investment and |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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