Correlation Between Vietnam JSCmmercial and COMA 18
Can any of the company-specific risk be diversified away by investing in both Vietnam JSCmmercial and COMA 18 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 Vietnam JSCmmercial and COMA 18 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam JSCmmercial Bank and COMA 18 JSC, you can compare the effects of market volatilities on Vietnam JSCmmercial and COMA 18 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 Vietnam JSCmmercial with a short position of COMA 18. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam JSCmmercial and COMA 18.
Diversification Opportunities for Vietnam JSCmmercial and COMA 18
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vietnam and COMA is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam JSCmmercial Bank and COMA 18 JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMA 18 JSC and Vietnam JSCmmercial 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 Vietnam JSCmmercial Bank are associated (or correlated) with COMA 18. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMA 18 JSC has no effect on the direction of Vietnam JSCmmercial i.e., Vietnam JSCmmercial and COMA 18 go up and down completely randomly.
Pair Corralation between Vietnam JSCmmercial and COMA 18
Assuming the 90 days trading horizon Vietnam JSCmmercial is expected to generate 1.23 times less return on investment than COMA 18. But when comparing it to its historical volatility, Vietnam JSCmmercial Bank is 1.49 times less risky than COMA 18. It trades about 0.06 of its potential returns per unit of risk. COMA 18 JSC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 656,000 in COMA 18 JSC on September 12, 2024 and sell it today you would earn a total of 252,000 from holding COMA 18 JSC or generate 38.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Vietnam JSCmmercial Bank vs. COMA 18 JSC
Performance |
| Timeline |
| Vietnam JSCmmercial Bank |
| COMA 18 JSC |
Vietnam JSCmmercial and COMA 18 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam JSCmmercial and COMA 18
The main advantage of trading using opposite Vietnam JSCmmercial and COMA 18 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam JSCmmercial position performs unexpectedly, COMA 18 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 COMA 18 will offset losses from the drop in COMA 18's long position.| Vietnam JSCmmercial vs. Petrolimex International Trading | Vietnam JSCmmercial vs. Travel Investment and | Vietnam JSCmmercial vs. Construction And Investment | Vietnam JSCmmercial vs. LDG Investment JSC |
| COMA 18 vs. PVI Reinsurance Corp | COMA 18 vs. Hochiminh City Metal | COMA 18 vs. Riverway Management JSC | COMA 18 vs. IDJ FINANCIAL |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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