Correlation Between Camau Trading and VN Index
Can any of the company-specific risk be diversified away by investing in both Camau Trading and VN Index 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 Camau Trading and VN Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camau Trading JSC and VN Index, you can compare the effects of market volatilities on Camau Trading and VN Index 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 Camau Trading with a short position of VN Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camau Trading and VN Index.
Diversification Opportunities for Camau Trading and VN Index
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Camau and VNI is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Camau Trading JSC and VN Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VN Index and Camau Trading 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 Camau Trading JSC are associated (or correlated) with VN Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VN Index has no effect on the direction of Camau Trading i.e., Camau Trading and VN Index go up and down completely randomly.
Pair Corralation between Camau Trading and VN Index
Assuming the 90 days trading horizon Camau Trading JSC is expected to under-perform the VN Index. In addition to that, Camau Trading is 6.84 times more volatile than VN Index. It trades about -0.23 of its total potential returns per unit of risk. VN Index is currently generating about -0.09 per unit of volatility. If you would invest 126,276 in VN Index on October 24, 2024 and sell it today you would lose (1,321) from holding VN Index or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Camau Trading JSC vs. VN Index
Performance |
| Timeline |
Camau Trading and VN Index Volatility Contrast
Predicted Return Density |
| Returns |
Camau Trading JSC
Pair trading matchups for Camau Trading
VN Index
Pair trading matchups for VN Index
Pair Trading with Camau Trading and VN Index
The main advantage of trading using opposite Camau Trading and VN Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camau Trading position performs unexpectedly, VN Index 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 VN Index will offset losses from the drop in VN Index's long position.| Camau Trading vs. FIT INVEST JSC | Camau Trading vs. Damsan JSC | Camau Trading vs. An Phat Plastic | Camau Trading vs. APG Securities Joint |
| VN Index vs. Petrolimex International Trading | VN Index vs. South Basic Chemicals | VN Index vs. POST TELECOMMU | VN Index vs. SMC Investment Trading |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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