Correlation Between TRON and Bao Ngoc
Can any of the company-specific risk be diversified away by investing in both TRON and Bao Ngoc 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 TRON and Bao Ngoc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRON and Bao Ngoc Investment, you can compare the effects of market volatilities on TRON and Bao Ngoc 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 TRON with a short position of Bao Ngoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRON and Bao Ngoc.
Diversification Opportunities for TRON and Bao Ngoc
Weak diversification
The 3 months correlation between TRON and Bao is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding TRON and Bao Ngoc Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bao Ngoc Investment and TRON 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 TRON are associated (or correlated) with Bao Ngoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bao Ngoc Investment has no effect on the direction of TRON i.e., TRON and Bao Ngoc go up and down completely randomly.
Pair Corralation between TRON and Bao Ngoc
Assuming the 90 days trading horizon TRON is expected to generate 3.11 times more return on investment than Bao Ngoc. However, TRON is 3.11 times more volatile than Bao Ngoc Investment. It trades about 0.08 of its potential returns per unit of risk. Bao Ngoc Investment is currently generating about 0.01 per unit of risk. If you would invest 6.67 in TRON on November 2, 2024 and sell it today you would earn a total of 18.33 from holding TRON or generate 274.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 60.45% |
| Values | Daily Returns |
TRON vs. Bao Ngoc Investment
Performance |
| Timeline |
| TRON |
| Bao Ngoc Investment |
TRON and Bao Ngoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRON and Bao Ngoc
The main advantage of trading using opposite TRON and Bao Ngoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRON position performs unexpectedly, Bao Ngoc 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 Bao Ngoc will offset losses from the drop in Bao Ngoc's long position.The idea behind TRON and Bao Ngoc Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Bao Ngoc vs. FIT INVEST JSC | Bao Ngoc vs. Damsan JSC | Bao Ngoc vs. An Phat Plastic | Bao Ngoc 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |