Correlation Between 1369 Construction and Viettel Construction
Can any of the company-specific risk be diversified away by investing in both 1369 Construction and Viettel 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 1369 Construction and Viettel Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1369 Construction JSC and Viettel Construction JSC, you can compare the effects of market volatilities on 1369 Construction and Viettel 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 1369 Construction with a short position of Viettel Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1369 Construction and Viettel Construction.
Diversification Opportunities for 1369 Construction and Viettel Construction
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 1369 and Viettel is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding 1369 Construction JSC and Viettel Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viettel Construction JSC and 1369 Construction 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 1369 Construction JSC are associated (or correlated) with Viettel Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viettel Construction JSC has no effect on the direction of 1369 Construction i.e., 1369 Construction and Viettel Construction go up and down completely randomly.
Pair Corralation between 1369 Construction and Viettel Construction
Assuming the 90 days trading horizon 1369 Construction JSC is expected to generate 0.93 times more return on investment than Viettel Construction. However, 1369 Construction JSC is 1.07 times less risky than Viettel Construction. It trades about -0.01 of its potential returns per unit of risk. Viettel Construction JSC is currently generating about -0.02 per unit of risk. If you would invest 700,000 in 1369 Construction JSC on September 2, 2024 and sell it today you would lose (40,000) from holding 1369 Construction JSC or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
1369 Construction JSC vs. Viettel Construction JSC
Performance |
| Timeline |
| 1369 Construction JSC |
| Viettel Construction JSC |
1369 Construction and Viettel Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1369 Construction and Viettel Construction
The main advantage of trading using opposite 1369 Construction and Viettel Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1369 Construction position performs unexpectedly, Viettel 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 Viettel Construction will offset losses from the drop in Viettel Construction's long position.| 1369 Construction vs. FIT INVEST JSC | 1369 Construction vs. Damsan JSC | 1369 Construction vs. An Phat Plastic | 1369 Construction vs. Alphanam ME |
| Viettel Construction vs. FIT INVEST JSC | Viettel Construction vs. Damsan JSC | Viettel Construction vs. An Phat Plastic | Viettel Construction vs. Alphanam ME |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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