Correlation Between Alphanam and Vietnam Technological
Can any of the company-specific risk be diversified away by investing in both Alphanam and Vietnam Technological 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 Vietnam Technological into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Vietnam Technological And, you can compare the effects of market volatilities on Alphanam and Vietnam Technological 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 Vietnam Technological. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Vietnam Technological.
Diversification Opportunities for Alphanam and Vietnam Technological
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alphanam and Vietnam is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Vietnam Technological And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Technological And 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 Vietnam Technological. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Technological And has no effect on the direction of Alphanam i.e., Alphanam and Vietnam Technological go up and down completely randomly.
Pair Corralation between Alphanam and Vietnam Technological
Assuming the 90 days trading horizon Alphanam is expected to generate 1.69 times less return on investment than Vietnam Technological. In addition to that, Alphanam is 2.57 times more volatile than Vietnam Technological And. It trades about 0.01 of its total potential returns per unit of risk. Vietnam Technological And is currently generating about 0.06 per unit of volatility. If you would invest 2,440,000 in Vietnam Technological And on October 31, 2024 and sell it today you would earn a total of 35,000 from holding Vietnam Technological And or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 35.0% |
| Values | Daily Returns |
Alphanam ME vs. Vietnam Technological And
Performance |
| Timeline |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vietnam Technological And |
Alphanam and Vietnam Technological Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Vietnam Technological
The main advantage of trading using opposite Alphanam and Vietnam Technological positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Vietnam Technological 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 Vietnam Technological will offset losses from the drop in Vietnam Technological's long position.| Alphanam vs. Petrolimex Petrochemical JSC | Alphanam vs. Construction And Investment | Alphanam vs. TDT Investment and | Alphanam vs. LDG Investment JSC |
| Vietnam Technological vs. Vietnam Construction JSC | Vietnam Technological vs. Construction And Investment | Vietnam Technological vs. Hung Hau Agricultural | Vietnam Technological vs. Long Giang 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |