Correlation Between Hanoi Beer and VN Index
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer and VN Index 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 VN Index 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 VN Index, you can compare the effects of market volatilities on Hanoi Beer and VN Index 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 VN Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and VN Index.
Diversification Opportunities for Hanoi Beer and VN Index
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanoi and VNI is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Alcohol and VN Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VN Index 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 VN Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VN Index has no effect on the direction of Hanoi Beer i.e., Hanoi Beer and VN Index go up and down completely randomly.
Pair Corralation between Hanoi Beer and VN Index
Assuming the 90 days trading horizon Hanoi Beer Alcohol is expected to generate 4.32 times more return on investment than VN Index. However, Hanoi Beer is 4.32 times more volatile than VN Index. It trades about 0.1 of its potential returns per unit of risk. VN Index is currently generating about 0.0 per unit of risk. If you would invest 3,665,000 in Hanoi Beer Alcohol on October 25, 2024 and sell it today you would earn a total of 135,000 from holding Hanoi Beer Alcohol or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
Hanoi Beer Alcohol vs. VN Index
Performance |
| Timeline |
Hanoi Beer and VN Index Volatility Contrast
Predicted Return Density |
| Returns |
Hanoi Beer Alcohol
Pair trading matchups for Hanoi Beer
VN Index
Pair trading matchups for VN Index
Pair Trading with Hanoi Beer and VN Index
The main advantage of trading using opposite Hanoi Beer and VN Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer position performs unexpectedly, VN Index 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 VN Index will offset losses from the drop in VN Index's long position.| Hanoi Beer vs. FIT INVEST JSC | Hanoi Beer vs. Damsan JSC | Hanoi Beer vs. An Phat Plastic | Hanoi Beer vs. APG Securities Joint |
| VN Index vs. Thanh Dat Investment | VN Index vs. PVI Reinsurance Corp | VN Index vs. Telecoms Informatics JSC | VN Index vs. Din Capital 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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