Correlation Between Kien Giang and Vietnam Airlines
Can any of the company-specific risk be diversified away by investing in both Kien Giang and Vietnam Airlines 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 Kien Giang and Vietnam Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kien Giang Construction and Vietnam Airlines JSC, you can compare the effects of market volatilities on Kien Giang and Vietnam Airlines 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 Kien Giang with a short position of Vietnam Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kien Giang and Vietnam Airlines.
Diversification Opportunities for Kien Giang and Vietnam Airlines
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kien and Vietnam is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kien Giang Construction and Vietnam Airlines JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Airlines JSC and Kien Giang 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 Kien Giang Construction are associated (or correlated) with Vietnam Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Airlines JSC has no effect on the direction of Kien Giang i.e., Kien Giang and Vietnam Airlines go up and down completely randomly.
Pair Corralation between Kien Giang and Vietnam Airlines
Assuming the 90 days trading horizon Kien Giang Construction is expected to under-perform the Vietnam Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Kien Giang Construction is 1.82 times less risky than Vietnam Airlines. The stock trades about -0.4 of its potential returns per unit of risk. The Vietnam Airlines JSC is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,325,000 in Vietnam Airlines JSC on September 1, 2024 and sell it today you would earn a total of 465,000 from holding Vietnam Airlines JSC or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kien Giang Construction vs. Vietnam Airlines JSC
Performance |
| Timeline |
| Kien Giang Construction |
| Vietnam Airlines JSC |
Kien Giang and Vietnam Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kien Giang and Vietnam Airlines
The main advantage of trading using opposite Kien Giang and Vietnam Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kien Giang position performs unexpectedly, Vietnam Airlines 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 Vietnam Airlines will offset losses from the drop in Vietnam Airlines' long position.| Kien Giang vs. Tng Investment And | Kien Giang vs. TDT Investment and | Kien Giang vs. Fecon Mining JSC | Kien Giang vs. Hanoi Beer Alcohol |
| Vietnam Airlines vs. Song Hong Garment | Vietnam Airlines vs. Alphanam ME | Vietnam Airlines vs. Hochiminh City Metal | Vietnam Airlines vs. Atesco Industrial Cartering |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |