Correlation Between Tng Investment and Construction JSC

Can any of the company-specific risk be diversified away by investing in both Tng Investment and Construction JSC 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 Construction JSC 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 Construction JSC No5, you can compare the effects of market volatilities on Tng Investment and Construction JSC 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 Construction JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and Construction JSC.

Diversification Opportunities for Tng Investment and Construction JSC

0.33

Correlation Coefficient

Tng Investment  Construction JSC

Weak diversification

The 3 months correlation between Tng and Construction is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And and Construction JSC No5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Construction JSC No5 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 Construction JSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Construction JSC No5 has no effect on the direction of Tng Investment i.e., Tng Investment and Construction JSC go up and down completely randomly.

Pair Corralation between Tng Investment and Construction JSC

Assuming the 90 days trading horizon Tng Investment And is expected to generate 0.27 times more return on investment than Construction JSC. However, Tng Investment And is 3.67 times less risky than Construction JSC. It trades about -0.16 of its potential returns per unit of risk. Construction JSC No5 is currently generating about -0.11 per unit of risk. If you would invest  2,477,468  in Tng Investment And on December 30, 2024 and sell it today you would lose (277,468) from holding Tng Investment And or give up 11.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	57.63%
Values	Daily Returns

Tng Investment And  vs.  Construction JSC No5

Tng Investment And

Risk-Adjusted Performance

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 latest unfluctuating performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Construction JSC No5

Risk-Adjusted Performance

Very Weak

Over the last 90 days Construction JSC No5 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Tng Investment and Construction JSC

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

The idea behind Tng Investment And and Construction JSC No5 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.