Correlation Between Hanoi Beer and Vinacontrol Group
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer and Vinacontrol Group 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 Hanoi Beer and Vinacontrol Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanoi Beer Alcohol and Vinacontrol Group Corp, you can compare the effects of market volatilities on Hanoi Beer and Vinacontrol Group 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 Hanoi Beer with a short position of Vinacontrol Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and Vinacontrol Group.
Diversification Opportunities for Hanoi Beer and Vinacontrol Group
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanoi and Vinacontrol is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Alcohol and Vinacontrol Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinacontrol Group Corp and Hanoi Beer 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 Hanoi Beer Alcohol are associated (or correlated) with Vinacontrol Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinacontrol Group Corp has no effect on the direction of Hanoi Beer i.e., Hanoi Beer and Vinacontrol Group go up and down completely randomly.
Pair Corralation between Hanoi Beer and Vinacontrol Group
Assuming the 90 days trading horizon Hanoi Beer is expected to generate 1.26 times less return on investment than Vinacontrol Group. But when comparing it to its historical volatility, Hanoi Beer Alcohol is 2.63 times less risky than Vinacontrol Group. It trades about 0.01 of its potential returns per unit of risk. Vinacontrol Group Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,460,799 in Vinacontrol Group Corp on September 14, 2024 and sell it today you would lose (410,799) from holding Vinacontrol Group Corp or give up 9.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.75% |
| Values | Daily Returns |
Hanoi Beer Alcohol vs. Vinacontrol Group Corp
Performance |
| Timeline |
| Hanoi Beer Alcohol |
| Vinacontrol Group Corp |
Hanoi Beer and Vinacontrol Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Beer and Vinacontrol Group
The main advantage of trading using opposite Hanoi Beer and Vinacontrol Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer position performs unexpectedly, Vinacontrol Group 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 Vinacontrol Group will offset losses from the drop in Vinacontrol Group's long position.| Hanoi Beer vs. Pha Lai Thermal | Hanoi Beer vs. Southern Rubber Industry | Hanoi Beer vs. Vietnam Airlines JSC | Hanoi Beer vs. BaoMinh Insurance Corp |
| Vinacontrol Group vs. Hai An Transport | Vinacontrol Group vs. Global Electrical Technology | Vinacontrol Group vs. Dinhvu Port Investment | Vinacontrol Group vs. Hanoi Beer Alcohol |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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