Correlation Between Alphanam and VietinBank Securities
Can any of the company-specific risk be diversified away by investing in both Alphanam 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 Alphanam and VietinBank Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and VietinBank Securities JSC, you can compare the effects of market volatilities on Alphanam 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 Alphanam with a short position of VietinBank Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and VietinBank Securities.
Diversification Opportunities for Alphanam and VietinBank Securities
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alphanam and VietinBank is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME 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 Alphanam 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 Alphanam ME 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 Alphanam i.e., Alphanam and VietinBank Securities go up and down completely randomly.
Pair Corralation between Alphanam and VietinBank Securities
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the VietinBank Securities. In addition to that, Alphanam is 1.75 times more volatile than VietinBank Securities JSC. It trades about -0.06 of its total potential returns per unit of risk. VietinBank Securities JSC is currently generating about -0.01 per unit of volatility. If you would invest 3,460,000 in VietinBank Securities JSC on November 3, 2024 and sell it today you would lose (100,000) from holding VietinBank Securities JSC or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 50.41% |
| Values | Daily Returns |
Alphanam ME vs. VietinBank Securities JSC
Performance |
| Timeline |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| VietinBank Securities JSC |
Alphanam and VietinBank Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and VietinBank Securities
The main advantage of trading using opposite Alphanam and VietinBank Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam 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.| Alphanam vs. Vu Dang Investment | Alphanam vs. Pha Le Plastics | Alphanam vs. Taseco Air Services | Alphanam vs. Binh Minh Plastics |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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