Correlation Between Techno Agricultural and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both Techno Agricultural and Mekong Fisheries 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 Techno Agricultural and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techno Agricultural Supplying and Mekong Fisheries JSC, you can compare the effects of market volatilities on Techno Agricultural and Mekong Fisheries 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 Techno Agricultural with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techno Agricultural and Mekong Fisheries.
Diversification Opportunities for Techno Agricultural and Mekong Fisheries
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Techno and Mekong is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Techno Agricultural Supplying and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and Techno Agricultural 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 Techno Agricultural Supplying are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of Techno Agricultural i.e., Techno Agricultural and Mekong Fisheries go up and down completely randomly.
Pair Corralation between Techno Agricultural and Mekong Fisheries
Assuming the 90 days trading horizon Techno Agricultural Supplying is expected to generate 0.42 times more return on investment than Mekong Fisheries. However, Techno Agricultural Supplying is 2.41 times less risky than Mekong Fisheries. It trades about 0.08 of its potential returns per unit of risk. Mekong Fisheries JSC is currently generating about 0.02 per unit of risk. If you would invest 239,000 in Techno Agricultural Supplying on November 5, 2024 and sell it today you would earn a total of 3,000 from holding Techno Agricultural Supplying or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Techno Agricultural Supplying vs. Mekong Fisheries JSC
Performance |
| Timeline |
| Techno Agricultural |
| Mekong Fisheries JSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Techno Agricultural and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techno Agricultural and Mekong Fisheries
The main advantage of trading using opposite Techno Agricultural and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techno Agricultural position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.| Techno Agricultural vs. FIT INVEST JSC | Techno Agricultural vs. Damsan JSC | Techno Agricultural vs. An Phat Plastic | Techno Agricultural vs. APG Securities Joint |
| Mekong Fisheries vs. Post and Telecommunications | Mekong Fisheries vs. PetroVietnam Transportation Corp | Mekong Fisheries vs. Hai An Transport | Mekong Fisheries vs. Vincom Retail JSC |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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