Correlation Between CEO Group and Masan Group
Can any of the company-specific risk be diversified away by investing in both CEO Group and Masan 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 CEO Group and Masan Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEO Group JSC and Masan Group Corp, you can compare the effects of market volatilities on CEO Group and Masan 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 CEO Group with a short position of Masan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEO Group and Masan Group.
Diversification Opportunities for CEO Group and Masan Group
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CEO and Masan is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CEO Group JSC and Masan Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masan Group Corp and CEO Group 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 CEO Group JSC are associated (or correlated) with Masan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masan Group Corp has no effect on the direction of CEO Group i.e., CEO Group and Masan Group go up and down completely randomly.
Pair Corralation between CEO Group and Masan Group
Assuming the 90 days trading horizon CEO Group JSC is expected to generate 1.52 times more return on investment than Masan Group. However, CEO Group is 1.52 times more volatile than Masan Group Corp. It trades about 0.0 of its potential returns per unit of risk. Masan Group Corp is currently generating about 0.0 per unit of risk. If you would invest 1,704,762 in CEO Group JSC on September 12, 2024 and sell it today you would lose (254,762) from holding CEO Group JSC or give up 14.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEO Group JSC vs. Masan Group Corp
Performance |
| Timeline |
| CEO Group JSC |
| Masan Group Corp |
CEO Group and Masan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEO Group and Masan Group
The main advantage of trading using opposite CEO Group and Masan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEO Group position performs unexpectedly, Masan 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 Masan Group will offset losses from the drop in Masan Group's long position.| CEO Group vs. VTC Telecommunications JSC | CEO Group vs. Telecoms Informatics JSC | CEO Group vs. Danang Education Investment | CEO Group vs. Fecon Mining JSC |
| Masan Group vs. Vietnam Technological And | Masan Group vs. Global Electrical Technology | Masan Group vs. Ha Noi Education | Masan Group vs. Danang Education 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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