Correlation Between Tng Investment and Long Giang
Can any of the company-specific risk be diversified away by investing in both Tng Investment and Long Giang 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 Long Giang 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 Long Giang Investment, you can compare the effects of market volatilities on Tng Investment and Long Giang 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 Long Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and Long Giang.
Diversification Opportunities for Tng Investment and Long Giang
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tng and Long is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And and Long Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Giang Investment 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 Long Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Giang Investment has no effect on the direction of Tng Investment i.e., Tng Investment and Long Giang go up and down completely randomly.
Pair Corralation between Tng Investment and Long Giang
Assuming the 90 days trading horizon Tng Investment And is expected to generate 0.98 times more return on investment than Long Giang. However, Tng Investment And is 1.02 times less risky than Long Giang. It trades about 0.06 of its potential returns per unit of risk. Long Giang Investment is currently generating about -0.01 per unit of risk. If you would invest 1,478,251 in Tng Investment And on October 5, 2024 and sell it today you would earn a total of 1,041,749 from holding Tng Investment And or generate 70.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Tng Investment And vs. Long Giang Investment
Performance |
Timeline |
Tng Investment And |
Long Giang Investment |
Tng Investment and Long Giang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tng Investment and Long Giang
The main advantage of trading using opposite Tng Investment and Long Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tng Investment position performs unexpectedly, Long Giang 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 Long Giang will offset losses from the drop in Long Giang's long position.Tng Investment vs. SCG Construction JSC | Tng Investment vs. Techno Agricultural Supplying | Tng Investment vs. Saigon Machinery Spare | Tng Investment vs. Elcom Technology Communications |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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