Correlation Between Investment and Vincom Retail
Can any of the company-specific risk be diversified away by investing in both Investment and Vincom Retail 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 Vincom Retail 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 Vincom Retail JSC, you can compare the effects of market volatilities on Investment and Vincom Retail 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 Vincom Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Vincom Retail.
Diversification Opportunities for Investment and Vincom Retail
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Investment and Vincom is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Investment and Industrial and Vincom Retail JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vincom Retail 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 Vincom Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vincom Retail JSC has no effect on the direction of Investment i.e., Investment and Vincom Retail go up and down completely randomly.
Pair Corralation between Investment and Vincom Retail
Assuming the 90 days trading horizon Investment and Industrial is expected to generate 0.89 times more return on investment than Vincom Retail. However, Investment and Industrial is 1.13 times less risky than Vincom Retail. It trades about 0.02 of its potential returns per unit of risk. Vincom Retail JSC is currently generating about -0.06 per unit of risk. If you would invest 6,402,549 in Investment and Industrial on September 3, 2024 and sell it today you would earn a total of 247,451 from holding Investment and Industrial or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment and Industrial vs. Vincom Retail JSC
Performance |
| Timeline |
| Investment and Industrial |
| Vincom Retail JSC |
Investment and Vincom Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Vincom Retail
The main advantage of trading using opposite Investment and Vincom Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment position performs unexpectedly, Vincom Retail 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 Vincom Retail will offset losses from the drop in Vincom Retail's long position.| Investment vs. FIT INVEST JSC | Investment vs. Damsan JSC | Investment vs. An Phat Plastic | Investment vs. Alphanam ME |
| Vincom Retail vs. Nafoods Group JSC | Vincom Retail vs. Bao Ngoc Investment | Vincom Retail vs. Long An Food | Vincom Retail vs. Investment and Industrial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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