Correlation Between Tien Giang and Development Investment

Can any of the company-specific risk be diversified away by investing in both Tien Giang and Development Investment 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 Tien Giang and Development Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tien Giang Investment and Development Investment Construction, you can compare the effects of market volatilities on Tien Giang and Development Investment 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 Tien Giang with a short position of Development Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Giang and Development Investment.

Diversification Opportunities for Tien Giang and Development Investment

-0.14

Correlation Coefficient

Tien Giang  Development Investment

Good diversification

The 3 months correlation between Tien and Development is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tien Giang Investment and Development Investment Constru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Development Investment and Tien Giang 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 Tien Giang Investment are associated (or correlated) with Development Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Development Investment has no effect on the direction of Tien Giang i.e., Tien Giang and Development Investment go up and down completely randomly.

Pair Corralation between Tien Giang and Development Investment

Assuming the 90 days trading horizon Tien Giang Investment is expected to generate 0.35 times more return on investment than Development Investment. However, Tien Giang Investment is 2.82 times less risky than Development Investment. It trades about 0.2 of its potential returns per unit of risk. Development Investment Construction is currently generating about 0.06 per unit of risk. If you would invest  4,396,209  in Tien Giang Investment on October 1, 2024 and sell it today you would earn a total of  573,791  from holding Tien Giang Investment or generate 13.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	70.77%
Values	Daily Returns

Tien Giang Investment  vs.  Development Investment Constru

Tien Giang Investment

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tien Giang Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Tien Giang may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Development Investment

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Development Investment Construction are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical indicators, Development Investment may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Tien Giang and Development Investment

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

The idea behind Tien Giang Investment and Development Investment Construction 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.