Correlation Between Tri Viet and LDG Investment
Can any of the company-specific risk be diversified away by investing in both Tri Viet and LDG 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 Tri Viet and LDG Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tri Viet Management and LDG Investment JSC, you can compare the effects of market volatilities on Tri Viet and LDG 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 Tri Viet with a short position of LDG Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tri Viet and LDG Investment.
Diversification Opportunities for Tri Viet and LDG Investment
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tri and LDG is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Tri Viet Management and LDG Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LDG Investment JSC and Tri Viet 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 Tri Viet Management are associated (or correlated) with LDG Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LDG Investment JSC has no effect on the direction of Tri Viet i.e., Tri Viet and LDG Investment go up and down completely randomly.
Pair Corralation between Tri Viet and LDG Investment
Assuming the 90 days trading horizon Tri Viet Management is expected to generate 1.97 times more return on investment than LDG Investment. However, Tri Viet is 1.97 times more volatile than LDG Investment JSC. It trades about 0.03 of its potential returns per unit of risk. LDG Investment JSC is currently generating about -0.06 per unit of risk. If you would invest 980,000 in Tri Viet Management on August 28, 2024 and sell it today you would earn a total of 10,000 from holding Tri Viet Management or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tri Viet Management vs. LDG Investment JSC
Performance |
| Timeline |
| Tri Viet Management |
| LDG Investment JSC |
Tri Viet and LDG Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tri Viet and LDG Investment
The main advantage of trading using opposite Tri Viet and LDG Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tri Viet position performs unexpectedly, LDG 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 LDG Investment will offset losses from the drop in LDG Investment's long position.| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet vs. APG Securities Joint |
| LDG Investment vs. FIT INVEST JSC | LDG Investment vs. Damsan JSC | LDG Investment vs. An Phat Plastic | LDG Investment 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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