Correlation Between 1369 Construction and Saigon Viendong
Can any of the company-specific risk be diversified away by investing in both 1369 Construction and Saigon Viendong 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 Saigon Viendong 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 Saigon Viendong Technology, you can compare the effects of market volatilities on 1369 Construction and Saigon Viendong 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 Saigon Viendong. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1369 Construction and Saigon Viendong.
Diversification Opportunities for 1369 Construction and Saigon Viendong
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 1369 and Saigon is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding 1369 Construction JSC and Saigon Viendong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Viendong Tech 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 Saigon Viendong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Viendong Tech has no effect on the direction of 1369 Construction i.e., 1369 Construction and Saigon Viendong go up and down completely randomly.
Pair Corralation between 1369 Construction and Saigon Viendong
Assuming the 90 days trading horizon 1369 Construction JSC is expected to under-perform the Saigon Viendong. But the stock apears to be less risky and, when comparing its historical volatility, 1369 Construction JSC is 2.28 times less risky than Saigon Viendong. The stock trades about -0.05 of its potential returns per unit of risk. The Saigon Viendong Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,155,000 in Saigon Viendong Technology on October 12, 2024 and sell it today you would lose (15,000) from holding Saigon Viendong Technology or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
1369 Construction JSC vs. Saigon Viendong Technology
Performance |
| Timeline |
| 1369 Construction JSC |
| Saigon Viendong Tech |
1369 Construction and Saigon Viendong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1369 Construction and Saigon Viendong
The main advantage of trading using opposite 1369 Construction and Saigon Viendong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1369 Construction position performs unexpectedly, Saigon Viendong 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 Saigon Viendong will offset losses from the drop in Saigon Viendong's long position.| 1369 Construction vs. Vietnam Technological And | 1369 Construction vs. Military Insurance Corp | 1369 Construction vs. PVI Reinsurance Corp | 1369 Construction vs. AgriBank Securities JSC |
| Saigon Viendong vs. 1369 Construction JSC | Saigon Viendong vs. Thanh Dat Investment | Saigon Viendong vs. Petrolimex International Trading | Saigon Viendong vs. SCG Construction JSC |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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