Correlation Between Investment and Vietnam Construction
Can any of the company-specific risk be diversified away by investing in both Investment and Vietnam Construction 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 Investment and Vietnam Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment and Industrial and Vietnam Construction JSC, you can compare the effects of market volatilities on Investment and Vietnam Construction 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 Investment with a short position of Vietnam Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Vietnam Construction.
Diversification Opportunities for Investment and Vietnam Construction
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Investment and Vietnam is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Investment and Industrial and Vietnam Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Construction JSC and Investment 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 Investment and Industrial are associated (or correlated) with Vietnam Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Construction JSC has no effect on the direction of Investment i.e., Investment and Vietnam Construction go up and down completely randomly.
Pair Corralation between Investment and Vietnam Construction
Assuming the 90 days trading horizon Investment and Industrial is expected to under-perform the Vietnam Construction. In addition to that, Investment is 1.51 times more volatile than Vietnam Construction JSC. It trades about -0.11 of its total potential returns per unit of risk. Vietnam Construction JSC is currently generating about 0.06 per unit of volatility. If you would invest 2,760,000 in Vietnam Construction JSC on November 8, 2024 and sell it today you would earn a total of 20,000 from holding Vietnam Construction JSC or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Investment and Industrial vs. Vietnam Construction JSC
Performance |
| Timeline |
| Investment and Industrial |
| Vietnam Construction JSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Investment and Vietnam Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Vietnam Construction
The main advantage of trading using opposite Investment and Vietnam Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment position performs unexpectedly, Vietnam Construction 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 Construction will offset losses from the drop in Vietnam Construction's long position.| Investment vs. Century Synthetic Fiber | Investment vs. Hanoi Plastics JSC | Investment vs. Military Insurance Corp | Investment vs. BaoMinh Insurance Corp |
| Vietnam Construction vs. FIT INVEST JSC | Vietnam Construction vs. Damsan JSC | Vietnam Construction vs. An Phat Plastic | Vietnam Construction vs. APG Securities Joint |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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