Correlation Between Mekong Fisheries and Joint Stock
Can any of the company-specific risk be diversified away by investing in both Mekong Fisheries and Joint Stock 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 Mekong Fisheries and Joint Stock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mekong Fisheries JSC and Joint Stock Commercial, you can compare the effects of market volatilities on Mekong Fisheries and Joint Stock 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 Mekong Fisheries with a short position of Joint Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and Joint Stock.
Diversification Opportunities for Mekong Fisheries and Joint Stock
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mekong and Joint is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mekong Fisheries JSC and Joint Stock Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Stock Commercial and Mekong Fisheries 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 Mekong Fisheries JSC are associated (or correlated) with Joint Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Stock Commercial has no effect on the direction of Mekong Fisheries i.e., Mekong Fisheries and Joint Stock go up and down completely randomly.
Pair Corralation between Mekong Fisheries and Joint Stock
Assuming the 90 days trading horizon Mekong Fisheries JSC is expected to under-perform the Joint Stock. In addition to that, Mekong Fisheries is 1.4 times more volatile than Joint Stock Commercial. It trades about -0.04 of its total potential returns per unit of risk. Joint Stock Commercial is currently generating about 0.06 per unit of volatility. If you would invest 3,863,600 in Joint Stock Commercial on October 16, 2024 and sell it today you would earn a total of 66,400 from holding Joint Stock Commercial or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mekong Fisheries JSC vs. Joint Stock Commercial
Performance |
| Timeline |
| Mekong Fisheries JSC |
| Joint Stock Commercial |
Mekong Fisheries and Joint Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekong Fisheries and Joint Stock
The main advantage of trading using opposite Mekong Fisheries and Joint Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekong Fisheries position performs unexpectedly, Joint Stock 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 Joint Stock will offset losses from the drop in Joint Stock's long position.| Mekong Fisheries vs. VietinBank Securities JSC | Mekong Fisheries vs. Asia Commercial Bank | Mekong Fisheries vs. Fecon Mining JSC | Mekong Fisheries vs. Tin Nghia Industrial |
| Joint Stock vs. Vina2 Investment and | Joint Stock vs. HVC Investment and | Joint Stock vs. Hoang Huy Investment | Joint Stock vs. Saigon Machinery Spare |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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