Correlation Between Atesco Industrial and Thien Long

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

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

Diversification Opportunities for Atesco Industrial and Thien Long

-0.5

Correlation Coefficient

Atesco Industrial  Thien Long

Very good diversification

The 3 months correlation between Atesco and Thien is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Atesco Industrial Cartering and Thien Long Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thien Long Group and Atesco Industrial 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 Atesco Industrial Cartering are associated (or correlated) with Thien Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thien Long Group has no effect on the direction of Atesco Industrial i.e., Atesco Industrial and Thien Long go up and down completely randomly.

Pair Corralation between Atesco Industrial and Thien Long

Assuming the 90 days trading horizon Atesco Industrial is expected to generate 1.1 times less return on investment than Thien Long. In addition to that, Atesco Industrial is 2.6 times more volatile than Thien Long Group. It trades about 0.1 of its total potential returns per unit of risk. Thien Long Group is currently generating about 0.3 per unit of volatility. If you would invest  6,020,000  in Thien Long Group on September 19, 2024 and sell it today you would earn a total of  940,000  from holding Thien Long Group or generate 15.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.91%
Values	Daily Returns

Atesco Industrial Cartering  vs.  Thien Long Group

Atesco Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atesco Industrial Cartering has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Thien Long Group

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Thien Long Group are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Thien Long displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atesco Industrial and Thien Long

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

The idea behind Atesco Industrial Cartering and Thien Long Group 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.

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 CEOs Directory module to screen CEOs from public companies around the world.