Correlation Between Tng Investment and Duc Thanh

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

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

Diversification Opportunities for Tng Investment and Duc Thanh

-0.15

Correlation Coefficient

Tng Investment  Duc Thanh

Good diversification

The 3 months correlation between Tng and Duc is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And and Duc Thanh Wood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duc Thanh Wood and Tng 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 Tng Investment And are associated (or correlated) with Duc Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duc Thanh Wood has no effect on the direction of Tng Investment i.e., Tng Investment and Duc Thanh go up and down completely randomly.

Pair Corralation between Tng Investment and Duc Thanh

Assuming the 90 days trading horizon Tng Investment And is expected to generate 0.73 times more return on investment than Duc Thanh. However, Tng Investment And is 1.36 times less risky than Duc Thanh. It trades about 0.1 of its potential returns per unit of risk. Duc Thanh Wood is currently generating about -0.13 per unit of risk. If you would invest  2,450,941  in Tng Investment And on September 5, 2024 and sell it today you would earn a total of  69,059  from holding Tng Investment And or generate 2.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Tng Investment And  vs.  Duc Thanh Wood

Tng Investment And

Risk-Adjusted Performance

0 of 100

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 very healthy technical and fundamental indicators, Tng Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Duc Thanh Wood

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Duc Thanh Wood are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Duc Thanh is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Tng Investment and Duc Thanh

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

The idea behind Tng Investment And and Duc Thanh Wood 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 Transaction History module to view history of all your transactions and understand their impact on performance.