Correlation Between Ba Ria and VTC Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Ba Ria and VTC Telecommunicatio 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 Ba Ria and VTC Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ba Ria Thermal and VTC Telecommunications JSC, you can compare the effects of market volatilities on Ba Ria and VTC Telecommunicatio 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 Ba Ria with a short position of VTC Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ba Ria and VTC Telecommunicatio.
Diversification Opportunities for Ba Ria and VTC Telecommunicatio
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BTP and VTC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ba Ria Thermal and VTC Telecommunications JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTC Telecommunications and Ba Ria 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 Ba Ria Thermal are associated (or correlated) with VTC Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTC Telecommunications has no effect on the direction of Ba Ria i.e., Ba Ria and VTC Telecommunicatio go up and down completely randomly.
Pair Corralation between Ba Ria and VTC Telecommunicatio
Assuming the 90 days trading horizon Ba Ria Thermal is expected to under-perform the VTC Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Ba Ria Thermal is 4.38 times less risky than VTC Telecommunicatio. The stock trades about -0.06 of its potential returns per unit of risk. The VTC Telecommunications JSC is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 830,000 in VTC Telecommunications JSC on October 28, 2024 and sell it today you would earn a total of 120,000 from holding VTC Telecommunications JSC or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Ba Ria Thermal vs. VTC Telecommunications JSC
Performance |
| Timeline |
| Ba Ria Thermal |
| VTC Telecommunications |
Ba Ria and VTC Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ba Ria and VTC Telecommunicatio
The main advantage of trading using opposite Ba Ria and VTC Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ba Ria position performs unexpectedly, VTC Telecommunicatio 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 VTC Telecommunicatio will offset losses from the drop in VTC Telecommunicatio's long position.| Ba Ria vs. Post and Telecommunications | Ba Ria vs. Mobile World Investment | Ba Ria vs. 1369 Construction JSC | Ba Ria vs. Sao Ta Foods |
| VTC Telecommunicatio vs. IDJ FINANCIAL | VTC Telecommunicatio vs. South Basic Chemicals | VTC Telecommunicatio vs. Petrolimex Insurance Corp | VTC Telecommunicatio 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| CEOs Directory Screen CEOs from public companies around the world |