Correlation Between 577 Investment and Thien Long

Can any of the company-specific risk be diversified away by investing in both 577 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 577 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 577 Investment Corp and Thien Long Group, you can compare the effects of market volatilities on 577 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 577 Investment with a short position of Thien Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of 577 Investment and Thien Long.

Diversification Opportunities for 577 Investment and Thien Long

-0.28

Correlation Coefficient

577 Investment  Thien Long

Very good diversification

The 3 months correlation between 577 and Thien is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding 577 Investment Corp 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 577 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 577 Investment Corp 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 577 Investment i.e., 577 Investment and Thien Long go up and down completely randomly.

Pair Corralation between 577 Investment and Thien Long

Assuming the 90 days trading horizon 577 Investment Corp is expected to under-perform the Thien Long. In addition to that, 577 Investment is 1.28 times more volatile than Thien Long Group. It trades about -0.11 of its total potential returns per unit of risk. Thien Long Group is currently generating about -0.02 per unit of volatility. If you would invest  6,660,000  in Thien Long Group on October 4, 2024 and sell it today you would lose (70,000) from holding Thien Long Group or give up 1.05% of portfolio value over 90 days.

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

577 Investment Corp  vs.  Thien Long Group

577 Investment Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 577 Investment Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, 577 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

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thien Long Group are ranked lower than 13 (%) 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 577 Investment and Thien Long

The main advantage of trading using opposite 577 Investment and Thien Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 577 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 577 Investment Corp 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.