Correlation Between Tay Ninh and Post
Can any of the company-specific risk be diversified away by investing in both Tay Ninh and Post 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 Post 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 Post and Telecommunications, you can compare the effects of market volatilities on Tay Ninh and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tay Ninh and Post.
Diversification Opportunities for Tay Ninh and Post
Poor diversification
The 3 months correlation between Tay and Post is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tay Ninh Rubber and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Tay Ninh i.e., Tay Ninh and Post go up and down completely randomly.
Pair Corralation between Tay Ninh and Post
Assuming the 90 days trading horizon Tay Ninh Rubber is expected to generate 1.03 times more return on investment than Post. However, Tay Ninh is 1.03 times more volatile than Post and Telecommunications. It trades about 0.29 of its potential returns per unit of risk. Post and Telecommunications is currently generating about 0.14 per unit of risk. If you would invest 5,220,000 in Tay Ninh Rubber on December 27, 2024 and sell it today you would earn a total of 3,270,000 from holding Tay Ninh Rubber or generate 62.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tay Ninh Rubber vs. Post and Telecommunications
Performance |
Timeline |
Tay Ninh Rubber |
Post and Telecommuni |
Tay Ninh and Post Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tay Ninh and Post
The main advantage of trading using opposite Tay Ninh and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tay Ninh position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.Tay Ninh vs. Da Nang Construction | Tay Ninh vs. Saigon Viendong Technology | Tay Ninh vs. Binhthuan Agriculture Services | Tay Ninh vs. SCG Construction JSC |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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