Correlation Between Amundi Index and VinaCapital Vietnam

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Can any of the company-specific risk be diversified away by investing in both Amundi Index and VinaCapital Vietnam 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 Amundi Index and VinaCapital Vietnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and VinaCapital Vietnam Opportunity, you can compare the effects of market volatilities on Amundi Index and VinaCapital Vietnam 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 Amundi Index with a short position of VinaCapital Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and VinaCapital Vietnam.

Diversification Opportunities for Amundi Index and VinaCapital Vietnam

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Amundi and VinaCapital is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and VinaCapital Vietnam Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinaCapital Vietnam and Amundi Index 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 Amundi Index Solutions are associated (or correlated) with VinaCapital Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VinaCapital Vietnam has no effect on the direction of Amundi Index i.e., Amundi Index and VinaCapital Vietnam go up and down completely randomly.

Pair Corralation between Amundi Index and VinaCapital Vietnam

Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the VinaCapital Vietnam. In addition to that, Amundi Index is 1.16 times more volatile than VinaCapital Vietnam Opportunity. It trades about -0.11 of its total potential returns per unit of risk. VinaCapital Vietnam Opportunity is currently generating about 0.02 per unit of volatility. If you would invest  44,870  in VinaCapital Vietnam Opportunity on September 25, 2024 and sell it today you would earn a total of  280.00  from holding VinaCapital Vietnam Opportunity or generate 0.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy97.67%
ValuesDaily Returns

Amundi Index Solutions  vs.  VinaCapital Vietnam Opportunit

 Performance 
       Timeline  
Amundi Index Solutions 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amundi Index Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Amundi Index is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
VinaCapital Vietnam 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days VinaCapital Vietnam Opportunity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, VinaCapital Vietnam is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Amundi Index and VinaCapital Vietnam Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amundi Index and VinaCapital Vietnam

The main advantage of trading using opposite Amundi Index and VinaCapital Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, VinaCapital Vietnam 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 VinaCapital Vietnam will offset losses from the drop in VinaCapital Vietnam's long position.
The idea behind Amundi Index Solutions and VinaCapital Vietnam Opportunity 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 CEOs Directory module to screen CEOs from public companies around the world.

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