Correlation Between Golden Long and Tsang Yow

Can any of the company-specific risk be diversified away by investing in both Golden Long and Tsang Yow 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 Golden Long and Tsang Yow into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Golden Long Teng and Tsang Yow Industrial, you can compare the effects of market volatilities on Golden Long and Tsang Yow 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 Golden Long with a short position of Tsang Yow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Long and Tsang Yow.

Diversification Opportunities for Golden Long and Tsang Yow

0.0

Correlation Coefficient

Golden Long  Tsang Yow

Pay attention - limited upside

The 3 months correlation between Golden and Tsang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Golden Long Teng and Tsang Yow Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsang Yow Industrial and Golden Long 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 Golden Long Teng are associated (or correlated) with Tsang Yow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsang Yow Industrial has no effect on the direction of Golden Long i.e., Golden Long and Tsang Yow go up and down completely randomly.

Pair Corralation between Golden Long and Tsang Yow

If you would invest  2,700  in Tsang Yow Industrial on December 22, 2024 and sell it today you would earn a total of  160.00  from holding Tsang Yow Industrial or generate 5.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Golden Long Teng  vs.  Tsang Yow Industrial

Golden Long Teng

Risk-Adjusted Performance

Good

Over the last 90 days Golden Long Teng has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Golden Long is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Tsang Yow Industrial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tsang Yow Industrial are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Tsang Yow may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Golden Long and Tsang Yow

The main advantage of trading using opposite Golden Long and Tsang Yow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Long position performs unexpectedly, Tsang Yow 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 Tsang Yow will offset losses from the drop in Tsang Yow's long position.

The idea behind Golden Long Teng and Tsang Yow Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.