Correlation Between Kien Giang and Saigon Beer
Can any of the company-specific risk be diversified away by investing in both Kien Giang and Saigon Beer 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 Saigon Beer 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 Saigon Beer Alcohol, you can compare the effects of market volatilities on Kien Giang and Saigon Beer 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 Saigon Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kien Giang and Saigon Beer.
Diversification Opportunities for Kien Giang and Saigon Beer
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kien and Saigon is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kien Giang Construction and Saigon Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Beer Alcohol 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 Saigon Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Beer Alcohol has no effect on the direction of Kien Giang i.e., Kien Giang and Saigon Beer go up and down completely randomly.
Pair Corralation between Kien Giang and Saigon Beer
Assuming the 90 days trading horizon Kien Giang Construction is expected to generate 4.39 times more return on investment than Saigon Beer. However, Kien Giang is 4.39 times more volatile than Saigon Beer Alcohol. It trades about 0.09 of its potential returns per unit of risk. Saigon Beer Alcohol is currently generating about -0.08 per unit of risk. If you would invest 1,930,000 in Kien Giang Construction on November 28, 2024 and sell it today you would earn a total of 70,000 from holding Kien Giang Construction or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kien Giang Construction vs. Saigon Beer Alcohol
Performance |
| Timeline |
| Kien Giang Construction |
| Saigon Beer Alcohol |
Kien Giang and Saigon Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kien Giang and Saigon Beer
The main advantage of trading using opposite Kien Giang and Saigon Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kien Giang position performs unexpectedly, Saigon Beer 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 Beer will offset losses from the drop in Saigon Beer's long position.| Kien Giang vs. Tin Nghia Industrial | Kien Giang vs. Construction And Investment | Kien Giang vs. Asia Commercial Bank | Kien Giang vs. Petrolimex Insurance Corp |
| Saigon Beer vs. Petrovietnam Drilling Mud | Saigon Beer vs. HUD1 Investment and | Saigon Beer vs. Construction And Investment | Saigon Beer vs. Tien Giang 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 CEOs Directory module to screen CEOs from public companies around the world.
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