Correlation Between Techno Agricultural and Khang Minh
Can any of the company-specific risk be diversified away by investing in both Techno Agricultural and Khang Minh 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 Khang Minh 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 Khang Minh Brick, you can compare the effects of market volatilities on Techno Agricultural and Khang Minh 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 Khang Minh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techno Agricultural and Khang Minh.
Diversification Opportunities for Techno Agricultural and Khang Minh
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Techno and Khang is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Techno Agricultural Supplying and Khang Minh Brick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khang Minh Brick 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 Khang Minh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khang Minh Brick has no effect on the direction of Techno Agricultural i.e., Techno Agricultural and Khang Minh go up and down completely randomly.
Pair Corralation between Techno Agricultural and Khang Minh
Assuming the 90 days trading horizon Techno Agricultural Supplying is expected to generate 0.78 times more return on investment than Khang Minh. However, Techno Agricultural Supplying is 1.28 times less risky than Khang Minh. It trades about -0.03 of its potential returns per unit of risk. Khang Minh Brick is currently generating about -0.07 per unit of risk. If you would invest 400,000 in Techno Agricultural Supplying on September 4, 2024 and sell it today you would lose (161,000) from holding Techno Agricultural Supplying or give up 40.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Techno Agricultural Supplying vs. Khang Minh Brick
Performance |
| Timeline |
| Techno Agricultural |
| Khang Minh Brick |
Techno Agricultural and Khang Minh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techno Agricultural and Khang Minh
The main advantage of trading using opposite Techno Agricultural and Khang Minh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techno Agricultural position performs unexpectedly, Khang Minh 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 Khang Minh will offset losses from the drop in Khang Minh's long position.| Techno Agricultural vs. FIT INVEST JSC | Techno Agricultural vs. Damsan JSC | Techno Agricultural vs. An Phat Plastic | Techno Agricultural vs. Alphanam ME |
| Khang Minh vs. Tri Viet Management | Khang Minh vs. Vietnam Petroleum Transport | Khang Minh vs. 577 Investment Corp | Khang Minh vs. PV2 Investment 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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