Correlation Between Truong Thanh and Investment
Can any of the company-specific risk be diversified away by investing in both Truong Thanh and Investment 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 Truong Thanh and Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truong Thanh Furniture and Investment And Construction, you can compare the effects of market volatilities on Truong Thanh and Investment 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 Truong Thanh with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truong Thanh and Investment.
Diversification Opportunities for Truong Thanh and Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Truong and Investment is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Truong Thanh Furniture and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const and Truong Thanh 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 Truong Thanh Furniture are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of Truong Thanh i.e., Truong Thanh and Investment go up and down completely randomly.
Pair Corralation between Truong Thanh and Investment
Assuming the 90 days trading horizon Truong Thanh Furniture is expected to generate 0.65 times more return on investment than Investment. However, Truong Thanh Furniture is 1.54 times less risky than Investment. It trades about -0.01 of its potential returns per unit of risk. Investment And Construction is currently generating about -0.03 per unit of risk. If you would invest 311,000 in Truong Thanh Furniture on October 11, 2024 and sell it today you would lose (2,000) from holding Truong Thanh Furniture or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Truong Thanh Furniture vs. Investment And Construction
Performance |
| Timeline |
| Truong Thanh Furniture |
| Investment And Const |
Truong Thanh and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truong Thanh and Investment
The main advantage of trading using opposite Truong Thanh and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truong Thanh position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Truong Thanh vs. Thong Nhat Rubber | Truong Thanh vs. VTC Telecommunications JSC | Truong Thanh vs. Viet Thanh Plastic | Truong Thanh vs. Dong A Hotel |
| Investment vs. Telecoms Informatics JSC | Investment vs. South Basic Chemicals | Investment vs. Elcom Technology Communications | Investment vs. Truong Thanh Furniture |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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