Correlation Between Truong Thanh and Tay Ninh
Can any of the company-specific risk be diversified away by investing in both Truong Thanh and Tay Ninh 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 Truong Thanh and Tay Ninh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truong Thanh Furniture and Tay Ninh Rubber, you can compare the effects of market volatilities on Truong Thanh and Tay Ninh 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 Truong Thanh with a short position of Tay Ninh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truong Thanh and Tay Ninh.
Diversification Opportunities for Truong Thanh and Tay Ninh
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Truong and Tay is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Truong Thanh Furniture and Tay Ninh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tay Ninh Rubber and Truong Thanh 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 Truong Thanh Furniture are associated (or correlated) with Tay Ninh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tay Ninh Rubber has no effect on the direction of Truong Thanh i.e., Truong Thanh and Tay Ninh go up and down completely randomly.
Pair Corralation between Truong Thanh and Tay Ninh
Assuming the 90 days trading horizon Truong Thanh is expected to generate 9.3 times less return on investment than Tay Ninh. But when comparing it to its historical volatility, Truong Thanh Furniture is 2.43 times less risky than Tay Ninh. It trades about 0.07 of its potential returns per unit of risk. Tay Ninh Rubber is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 4,680,000 in Tay Ninh Rubber on September 25, 2024 and sell it today you would earn a total of 460,000 from holding Tay Ninh Rubber or generate 9.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Truong Thanh Furniture vs. Tay Ninh Rubber
Performance |
Timeline |
Truong Thanh Furniture |
Tay Ninh Rubber |
Truong Thanh and Tay Ninh Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Truong Thanh and Tay Ninh
The main advantage of trading using opposite Truong Thanh and Tay Ninh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truong Thanh position performs unexpectedly, Tay Ninh 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 Tay Ninh will offset losses from the drop in Tay Ninh's long position.Truong Thanh vs. FIT INVEST JSC | Truong Thanh vs. Damsan JSC | Truong Thanh vs. An Phat Plastic | Truong Thanh vs. Alphanam ME |
Tay Ninh vs. Petrolimex Information Technology | Tay Ninh vs. Hochiminh City Metal | Tay Ninh vs. Post and Telecommunications | Tay Ninh vs. VTC Telecommunications JSC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Bonds Directory Find actively traded corporate debentures issued by US companies |