Correlation Between Ha Long and Tng Investment
Can any of the company-specific risk be diversified away by investing in both Ha Long 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 Ha Long and Tng Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ha Long Investment and Tng Investment And, you can compare the effects of market volatilities on Ha Long 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 Ha Long with a short position of Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ha Long and Tng Investment.
Diversification Opportunities for Ha Long and Tng Investment
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HID and Tng is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ha Long Investment 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 Ha 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 Ha Long Investment 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 Ha Long i.e., Ha Long and Tng Investment go up and down completely randomly.
Pair Corralation between Ha Long and Tng Investment
Assuming the 90 days trading horizon Ha Long Investment is expected to generate 1.02 times more return on investment than Tng Investment. However, Ha Long is 1.02 times more volatile than Tng Investment And. It trades about 0.07 of its potential returns per unit of risk. Tng Investment And is currently generating about -0.21 per unit of risk. If you would invest 266,000 in Ha Long Investment on December 27, 2024 and sell it today you would earn a total of 12,000 from holding Ha Long Investment or generate 4.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.31% |
Values | Daily Returns |
Ha Long Investment vs. Tng Investment And
Performance |
Timeline |
Ha Long Investment |
Tng Investment And |
Ha Long and Tng Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ha Long and Tng Investment
The main advantage of trading using opposite Ha Long and Tng Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ha Long 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.Ha Long vs. BaoMinh Insurance Corp | Ha Long vs. Sao Ta Foods | Ha Long vs. Vietnam JSCmmercial Bank | Ha Long vs. PetroVietnam Transportation Corp |
Tng Investment vs. Hai An Transport | Tng Investment vs. Sea Air Freight | Tng Investment vs. Bich Chi Food | Tng Investment vs. PetroVietnam Transportation Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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