Correlation Between Atesco Industrial and Vinacomin Power
Can any of the company-specific risk be diversified away by investing in both Atesco Industrial and Vinacomin Power 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 Atesco Industrial and Vinacomin Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atesco Industrial Cartering and Vinacomin Power Holding, you can compare the effects of market volatilities on Atesco Industrial and Vinacomin Power 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 Atesco Industrial with a short position of Vinacomin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atesco Industrial and Vinacomin Power.
Diversification Opportunities for Atesco Industrial and Vinacomin Power
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Atesco and Vinacomin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Atesco Industrial Cartering and Vinacomin Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinacomin Power Holding and Atesco Industrial 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 Atesco Industrial Cartering are associated (or correlated) with Vinacomin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinacomin Power Holding has no effect on the direction of Atesco Industrial i.e., Atesco Industrial and Vinacomin Power go up and down completely randomly.
Pair Corralation between Atesco Industrial and Vinacomin Power
Assuming the 90 days trading horizon Atesco Industrial is expected to generate 4.13 times less return on investment than Vinacomin Power. In addition to that, Atesco Industrial is 2.28 times more volatile than Vinacomin Power Holding. It trades about 0.0 of its total potential returns per unit of risk. Vinacomin Power Holding is currently generating about 0.03 per unit of volatility. If you would invest 1,075,313 in Vinacomin Power Holding on September 12, 2024 and sell it today you would earn a total of 114,687 from holding Vinacomin Power Holding or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 55.45% |
| Values | Daily Returns |
Atesco Industrial Cartering vs. Vinacomin Power Holding
Performance |
| Timeline |
| Atesco Industrial |
| Vinacomin Power Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atesco Industrial and Vinacomin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atesco Industrial and Vinacomin Power
The main advantage of trading using opposite Atesco Industrial and Vinacomin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atesco Industrial position performs unexpectedly, Vinacomin Power 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 Vinacomin Power will offset losses from the drop in Vinacomin Power's long position.| Atesco Industrial vs. Ba Ria Thermal | Atesco Industrial vs. Military Insurance Corp | Atesco Industrial vs. Vnsteel Vicasa JSC | Atesco Industrial vs. FPT Digital Retail |
| Vinacomin Power vs. Post and Telecommunications | Vinacomin Power vs. Elcom Technology Communications | Vinacomin Power vs. Petrolimex Information Technology | Vinacomin Power vs. Global Electrical Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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