Correlation Between AgriBank Securities and VietinBank Securities
Can any of the company-specific risk be diversified away by investing in both AgriBank Securities and VietinBank 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 AgriBank Securities and VietinBank Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgriBank Securities JSC and VietinBank Securities JSC, you can compare the effects of market volatilities on AgriBank Securities and VietinBank 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 AgriBank Securities with a short position of VietinBank Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriBank Securities and VietinBank Securities.
Diversification Opportunities for AgriBank Securities and VietinBank Securities
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AgriBank and VietinBank is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding AgriBank Securities JSC and VietinBank Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VietinBank Securities JSC and AgriBank Securities 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 AgriBank Securities JSC are associated (or correlated) with VietinBank Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VietinBank Securities JSC has no effect on the direction of AgriBank Securities i.e., AgriBank Securities and VietinBank Securities go up and down completely randomly.
Pair Corralation between AgriBank Securities and VietinBank Securities
Assuming the 90 days trading horizon AgriBank Securities JSC is expected to generate 0.81 times more return on investment than VietinBank Securities. However, AgriBank Securities JSC is 1.24 times less risky than VietinBank Securities. It trades about -0.2 of its potential returns per unit of risk. VietinBank Securities JSC is currently generating about -0.18 per unit of risk. If you would invest 1,710,000 in AgriBank Securities JSC on November 3, 2024 and sell it today you would lose (75,000) from holding AgriBank Securities JSC or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgriBank Securities JSC vs. VietinBank Securities JSC
Performance |
| Timeline |
| AgriBank Securities JSC |
| VietinBank Securities JSC |
AgriBank Securities and VietinBank Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriBank Securities and VietinBank Securities
The main advantage of trading using opposite AgriBank Securities and VietinBank Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriBank Securities position performs unexpectedly, VietinBank 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 VietinBank Securities will offset losses from the drop in VietinBank Securities' long position.| AgriBank Securities vs. FIT INVEST JSC | AgriBank Securities vs. Damsan JSC | AgriBank Securities vs. An Phat Plastic | AgriBank Securities vs. APG Securities Joint |
| VietinBank Securities vs. Sea Air Freight | VietinBank Securities vs. IDJ FINANCIAL | VietinBank Securities vs. Military Insurance Corp | VietinBank Securities vs. DOMESCO Medical Import |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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