Correlation Between Techcom Vietnam and Techno Agricultural

Can any of the company-specific risk be diversified away by investing in both Techcom Vietnam and Techno Agricultural 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 Techcom Vietnam and Techno Agricultural into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Techcom Vietnam REIT and Techno Agricultural Supplying, you can compare the effects of market volatilities on Techcom Vietnam and Techno Agricultural 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 Techcom Vietnam with a short position of Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techcom Vietnam and Techno Agricultural.

Diversification Opportunities for Techcom Vietnam and Techno Agricultural

-0.42

Correlation Coefficient

Techcom Vietnam  Techno Agricultural

Very good diversification

The 3 months correlation between Techcom and Techno is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Techcom Vietnam REIT and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Agricultural and Techcom Vietnam 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 Techcom Vietnam REIT are associated (or correlated) with Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of Techcom Vietnam i.e., Techcom Vietnam and Techno Agricultural go up and down completely randomly.

Pair Corralation between Techcom Vietnam and Techno Agricultural

Assuming the 90 days trading horizon Techcom Vietnam REIT is expected to generate 1.74 times more return on investment than Techno Agricultural. However, Techcom Vietnam is 1.74 times more volatile than Techno Agricultural Supplying. It trades about -0.02 of its potential returns per unit of risk. Techno Agricultural Supplying is currently generating about -0.11 per unit of risk. If you would invest  525,000  in Techcom Vietnam REIT on March 26, 2025 and sell it today you would lose (7,000) from holding Techcom Vietnam REIT or give up 1.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.48%
Values	Daily Returns

Techcom Vietnam REIT  vs.  Techno Agricultural Supplying

Techcom Vietnam REIT

Risk-Adjusted Performance

Very Weak

Over the last 90 days Techcom Vietnam REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Techcom Vietnam is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Techno Agricultural

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Techno Agricultural Supplying are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Techno Agricultural may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Techcom Vietnam and Techno Agricultural

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

The idea behind Techcom Vietnam REIT and Techno Agricultural Supplying 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.