Correlation Between Tien Giang and MB Securities

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

Diversification Opportunities for Tien Giang and MB Securities

0.0

Correlation Coefficient

Tien Giang  MB Securities

Pay attention - limited upside

The 3 months correlation between Tien and MBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tien Giang Investment and MB Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MB Securities JSC 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 MB Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MB Securities JSC has no effect on the direction of Tien Giang i.e., Tien Giang and MB Securities go up and down completely randomly.

Pair Corralation between Tien Giang and MB Securities

Assuming the 90 days trading horizon Tien Giang Investment is expected to generate 0.48 times more return on investment than MB Securities. However, Tien Giang Investment is 2.07 times less risky than MB Securities. It trades about 0.2 of its potential returns per unit of risk. MB Securities JSC is currently generating about -0.06 per unit of risk. If you would invest  4,401,099  in Tien Giang Investment on September 29, 2024 and sell it today you would earn a total of  568,901  from holding Tien Giang Investment or generate 12.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tien Giang Investment  vs.  MB Securities JSC

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 unfluctuating technical and fundamental indicators, Tien Giang may actually be approaching a critical reversion point that can send shares even higher in January 2025.

MB Securities JSC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MB Securities JSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Tien Giang and MB Securities

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

The idea behind Tien Giang Investment and MB Securities JSC 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.