Correlation Between Cotec Construction and Vina2 Investment
Can any of the company-specific risk be diversified away by investing in both Cotec Construction and Vina2 Investment 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 Cotec Construction and Vina2 Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cotec Construction JSC and Vina2 Investment and, you can compare the effects of market volatilities on Cotec Construction and Vina2 Investment 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 Cotec Construction with a short position of Vina2 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cotec Construction and Vina2 Investment.
Diversification Opportunities for Cotec Construction and Vina2 Investment
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cotec and Vina2 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cotec Construction JSC and Vina2 Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina2 Investment and Cotec Construction 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 Cotec Construction JSC are associated (or correlated) with Vina2 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina2 Investment has no effect on the direction of Cotec Construction i.e., Cotec Construction and Vina2 Investment go up and down completely randomly.
Pair Corralation between Cotec Construction and Vina2 Investment
Assuming the 90 days trading horizon Cotec Construction JSC is expected to generate 0.63 times more return on investment than Vina2 Investment. However, Cotec Construction JSC is 1.59 times less risky than Vina2 Investment. It trades about 0.33 of its potential returns per unit of risk. Vina2 Investment and is currently generating about -0.15 per unit of risk. If you would invest 6,920,000 in Cotec Construction JSC on November 7, 2024 and sell it today you would earn a total of 410,000 from holding Cotec Construction JSC or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cotec Construction JSC vs. Vina2 Investment and
Performance |
| Timeline |
| Cotec Construction JSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Vina2 Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cotec Construction and Vina2 Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cotec Construction and Vina2 Investment
The main advantage of trading using opposite Cotec Construction and Vina2 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cotec Construction position performs unexpectedly, Vina2 Investment 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 Vina2 Investment will offset losses from the drop in Vina2 Investment's long position.| Cotec Construction vs. HUD1 Investment and | Cotec Construction vs. Hai An Transport | Cotec Construction vs. Vietnam JSCmmercial Bank | Cotec Construction vs. Elcom Technology Communications |
| Vina2 Investment vs. Damsan JSC | Vina2 Investment vs. Binhthuan Agriculture Services | Vina2 Investment 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |