Correlation Between Vietnam JSCmmercial and Post
Can any of the company-specific risk be diversified away by investing in both Vietnam JSCmmercial and Post 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 Post 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 Post and Telecommunications, you can compare the effects of market volatilities on Vietnam JSCmmercial and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam JSCmmercial and Post.
Diversification Opportunities for Vietnam JSCmmercial and Post
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vietnam and Post is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam JSCmmercial Bank and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Vietnam JSCmmercial i.e., Vietnam JSCmmercial and Post go up and down completely randomly.
Pair Corralation between Vietnam JSCmmercial and Post
Assuming the 90 days trading horizon Vietnam JSCmmercial Bank is expected to generate 0.86 times more return on investment than Post. However, Vietnam JSCmmercial Bank is 1.16 times less risky than Post. It trades about 0.09 of its potential returns per unit of risk. Post and Telecommunications is currently generating about -0.19 per unit of risk. If you would invest 3,635,000 in Vietnam JSCmmercial Bank on October 12, 2024 and sell it today you would earn a total of 106,000 from holding Vietnam JSCmmercial Bank or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam JSCmmercial Bank vs. Post and Telecommunications
Performance |
| Timeline |
| Vietnam JSCmmercial Bank |
| Post and Telecommuni |
Vietnam JSCmmercial and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam JSCmmercial and Post
The main advantage of trading using opposite Vietnam JSCmmercial and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam JSCmmercial position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Vietnam JSCmmercial vs. Thu Duc TradingImport | Vietnam JSCmmercial vs. Vu Dang Investment | Vietnam JSCmmercial vs. HUD1 Investment and | Vietnam JSCmmercial vs. Petrolimex International Trading |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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