Correlation Between Vietnam JSCmmercial and VBC
Can any of the company-specific risk be diversified away by investing in both Vietnam JSCmmercial and VBC 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 VBC 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 VBC, you can compare the effects of market volatilities on Vietnam JSCmmercial and VBC 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 VBC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam JSCmmercial and VBC.
Diversification Opportunities for Vietnam JSCmmercial and VBC
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vietnam and VBC is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam JSCmmercial Bank and VBC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VBC 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 VBC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VBC has no effect on the direction of Vietnam JSCmmercial i.e., Vietnam JSCmmercial and VBC go up and down completely randomly.
Pair Corralation between Vietnam JSCmmercial and VBC
If you would invest 3,530,000 in Vietnam JSCmmercial Bank on September 2, 2024 and sell it today you would earn a total of 45,000 from holding Vietnam JSCmmercial Bank or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Vietnam JSCmmercial Bank vs. VBC
Performance |
| Timeline |
| Vietnam JSCmmercial Bank |
| VBC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vietnam JSCmmercial and VBC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam JSCmmercial and VBC
The main advantage of trading using opposite Vietnam JSCmmercial and VBC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam JSCmmercial position performs unexpectedly, VBC 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 VBC will offset losses from the drop in VBC's long position.| Vietnam JSCmmercial vs. FIT INVEST JSC | Vietnam JSCmmercial vs. Damsan JSC | Vietnam JSCmmercial vs. An Phat Plastic | Vietnam JSCmmercial vs. Alphanam ME |
| VBC vs. Thanh Dat Investment | VBC vs. Development Investment Construction | VBC vs. MST Investment JSC | VBC vs. Techcom Vietnam REIT |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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