Correlation Between Techno Agricultural and Masan Group
Can any of the company-specific risk be diversified away by investing in both Techno Agricultural and Masan Group 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 Masan Group 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 Masan Group Corp, you can compare the effects of market volatilities on Techno Agricultural and Masan Group 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 Masan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techno Agricultural and Masan Group.
Diversification Opportunities for Techno Agricultural and Masan Group
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Techno and Masan is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Techno Agricultural Supplying and Masan Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masan Group Corp 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 Masan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masan Group Corp has no effect on the direction of Techno Agricultural i.e., Techno Agricultural and Masan Group go up and down completely randomly.
Pair Corralation between Techno Agricultural and Masan Group
Assuming the 90 days trading horizon Techno Agricultural Supplying is expected to under-perform the Masan Group. But the stock apears to be less risky and, when comparing its historical volatility, Techno Agricultural Supplying is 1.03 times less risky than Masan Group. The stock trades about -0.11 of its potential returns per unit of risk. The Masan Group Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,620,000 in Masan Group Corp on September 3, 2024 and sell it today you would earn a total of 640,000 from holding Masan Group Corp or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techno Agricultural Supplying vs. Masan Group Corp
Performance |
| Timeline |
| Techno Agricultural |
| Masan Group Corp |
Techno Agricultural and Masan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techno Agricultural and Masan Group
The main advantage of trading using opposite Techno Agricultural and Masan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techno Agricultural position performs unexpectedly, Masan Group 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 Masan Group will offset losses from the drop in Masan Group'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 |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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