Correlation Between MST Investment and Thien Long

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

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

Diversification Opportunities for MST Investment and Thien Long

0.0

Correlation Coefficient

MST Investment  Thien Long

Pay attention - limited upside

The 3 months correlation between MST and Thien is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MST Investment JSC 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 MST Investment 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 MST Investment JSC 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 MST Investment i.e., MST Investment and Thien Long go up and down completely randomly.

Pair Corralation between MST Investment and Thien Long

If you would invest  0.00  in Thien Long Group on December 19, 2024 and sell it today you would earn a total of  0.00  from holding Thien Long Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

MST Investment JSC  vs.  Thien Long Group

MST Investment JSC

Risk-Adjusted Performance

Very Weak

Over the last 90 days MST Investment JSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, MST Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Thien Long Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thien Long Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Thien Long is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with MST Investment and Thien Long

The main advantage of trading using opposite MST Investment and Thien Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MST Investment 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 MST Investment JSC 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.