Correlation Between Tay Ninh and Din Capital

Can any of the company-specific risk be diversified away by investing in both Tay Ninh and Din Capital 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 Tay Ninh and Din Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tay Ninh Rubber and Din Capital Investment, you can compare the effects of market volatilities on Tay Ninh and Din Capital 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 Tay Ninh with a short position of Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tay Ninh and Din Capital.

Diversification Opportunities for Tay Ninh and Din Capital

0.91

Correlation Coefficient

Tay Ninh  Din Capital

Almost no diversification

The 3 months correlation between Tay and Din is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tay Ninh Rubber and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital Investment and Tay Ninh 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 Tay Ninh Rubber are associated (or correlated) with Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of Tay Ninh i.e., Tay Ninh and Din Capital go up and down completely randomly.

Pair Corralation between Tay Ninh and Din Capital

Assuming the 90 days trading horizon Tay Ninh Rubber is expected to generate 0.8 times more return on investment than Din Capital. However, Tay Ninh Rubber is 1.25 times less risky than Din Capital. It trades about 0.07 of its potential returns per unit of risk. Din Capital Investment is currently generating about 0.01 per unit of risk. If you would invest  3,064,463  in Tay Ninh Rubber on October 11, 2024 and sell it today you would earn a total of  2,185,537  from holding Tay Ninh Rubber or generate 71.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	96.53%
Values	Daily Returns

Tay Ninh Rubber  vs.  Din Capital Investment

Tay Ninh Rubber

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tay Ninh Rubber are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Tay Ninh displayed solid returns over the last few months and may actually be approaching a breakup point.

Din Capital Investment

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Din Capital Investment are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental drivers, Din Capital displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tay Ninh and Din Capital

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

The idea behind Tay Ninh Rubber and Din Capital Investment 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.