Correlation Between Van Dien and Thu Duc

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

By analyzing existing cross correlation between Van Dien Fused and Thu Duc TradingImport, you can compare the effects of market volatilities on Van Dien and Thu Duc 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 Van Dien with a short position of Thu Duc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Van Dien and Thu Duc.

Diversification Opportunities for Van Dien and Thu Duc

0.0

Correlation Coefficient

Van Dien  Thu Duc

Pay attention - limited upside

The 3 months correlation between Van and Thu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Van Dien Fused and Thu Duc TradingImport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thu Duc TradingImport and Van Dien 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 Van Dien Fused are associated (or correlated) with Thu Duc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thu Duc TradingImport has no effect on the direction of Van Dien i.e., Van Dien and Thu Duc go up and down completely randomly.

Pair Corralation between Van Dien and Thu Duc

If you would invest  820,000  in Thu Duc TradingImport on October 24, 2024 and sell it today you would earn a total of  0.00  from holding Thu Duc TradingImport or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Van Dien Fused  vs.  Thu Duc TradingImport

Van Dien Fused

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Van Dien Fused has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Van Dien is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Thu Duc TradingImport

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thu Duc TradingImport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Thu Duc is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Van Dien and Thu Duc

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

The idea behind Van Dien Fused and Thu Duc TradingImport 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.