Correlation Between Kien Giang and Saigon Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Kien Giang and Saigon Telecommunicatio 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 Telecommunicatio 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 Telecommunication Technologies, you can compare the effects of market volatilities on Kien Giang and Saigon Telecommunicatio 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 Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kien Giang and Saigon Telecommunicatio.
Diversification Opportunities for Kien Giang and Saigon Telecommunicatio
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kien and Saigon is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kien Giang Construction and Saigon Telecommunication Techn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Telecommunicatio 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 Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Telecommunicatio has no effect on the direction of Kien Giang i.e., Kien Giang and Saigon Telecommunicatio go up and down completely randomly.
Pair Corralation between Kien Giang and Saigon Telecommunicatio
Assuming the 90 days trading horizon Kien Giang Construction is expected to under-perform the Saigon Telecommunicatio. In addition to that, Kien Giang is 1.31 times more volatile than Saigon Telecommunication Technologies. It trades about -0.48 of its total potential returns per unit of risk. Saigon Telecommunication Technologies is currently generating about 0.73 per unit of volatility. If you would invest 1,690,000 in Saigon Telecommunication Technologies on November 7, 2024 and sell it today you would earn a total of 295,000 from holding Saigon Telecommunication Technologies or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Kien Giang Construction vs. Saigon Telecommunication Techn
Performance |
| Timeline |
| Kien Giang Construction |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Saigon Telecommunicatio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Kien Giang and Saigon Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kien Giang and Saigon Telecommunicatio
The main advantage of trading using opposite Kien Giang and Saigon Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kien Giang position performs unexpectedly, Saigon Telecommunicatio 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 Telecommunicatio will offset losses from the drop in Saigon Telecommunicatio's long position.| Kien Giang vs. Damsan JSC | Kien Giang vs. Binhthuan Agriculture Services | Kien Giang vs. Bentre Aquaproduct Import |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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