Correlation Between Duc Thanh and Tng Investment

Can any of the company-specific risk be diversified away by investing in both Duc Thanh and Tng 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 Duc Thanh and Tng Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Duc Thanh Wood and Tng Investment And, you can compare the effects of market volatilities on Duc Thanh and Tng 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 Duc Thanh with a short position of Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duc Thanh and Tng Investment.

Diversification Opportunities for Duc Thanh and Tng Investment

0.82

Correlation Coefficient

Duc Thanh  Tng Investment

Very poor diversification

The 3 months correlation between Duc and Tng is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Duc Thanh Wood and Tng Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tng Investment And and Duc 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 Duc Thanh Wood are associated (or correlated) with Tng Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tng Investment And has no effect on the direction of Duc Thanh i.e., Duc Thanh and Tng Investment go up and down completely randomly.

Pair Corralation between Duc Thanh and Tng Investment

Assuming the 90 days trading horizon Duc Thanh Wood is expected to under-perform the Tng Investment. But the stock apears to be less risky and, when comparing its historical volatility, Duc Thanh Wood is 1.09 times less risky than Tng Investment. The stock trades about -0.23 of its potential returns per unit of risk. The Tng Investment And is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest  2,516,793  in Tng Investment And on December 27, 2024 and sell it today you would lose (346,793) from holding Tng Investment And or give up 13.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Duc Thanh Wood  vs.  Tng Investment And

Duc Thanh Wood

Risk-Adjusted Performance

Very Weak

Over the last 90 days Duc Thanh Wood 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 April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Tng Investment And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tng Investment And 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 technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Duc Thanh and Tng Investment

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

The idea behind Duc Thanh Wood and Tng Investment And 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.