Correlation Between Vietnam JSCmmercial and Vincom Retail
Can any of the company-specific risk be diversified away by investing in both Vietnam JSCmmercial and Vincom Retail 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 Vincom Retail 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 Vincom Retail JSC, you can compare the effects of market volatilities on Vietnam JSCmmercial and Vincom Retail 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 Vincom Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam JSCmmercial and Vincom Retail.
Diversification Opportunities for Vietnam JSCmmercial and Vincom Retail
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vietnam and Vincom is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam JSCmmercial Bank and Vincom Retail JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vincom Retail 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 Vincom Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vincom Retail JSC has no effect on the direction of Vietnam JSCmmercial i.e., Vietnam JSCmmercial and Vincom Retail go up and down completely randomly.
Pair Corralation between Vietnam JSCmmercial and Vincom Retail
Assuming the 90 days trading horizon Vietnam JSCmmercial Bank is expected to generate 0.87 times more return on investment than Vincom Retail. However, Vietnam JSCmmercial Bank is 1.14 times less risky than Vincom Retail. It trades about 0.08 of its potential returns per unit of risk. Vincom Retail JSC is currently generating about -0.04 per unit of risk. If you would invest 2,690,000 in Vietnam JSCmmercial Bank on September 3, 2024 and sell it today you would earn a total of 895,000 from holding Vietnam JSCmmercial Bank or generate 33.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam JSCmmercial Bank vs. Vincom Retail JSC
Performance |
| Timeline |
| Vietnam JSCmmercial Bank |
| Vincom Retail JSC |
Vietnam JSCmmercial and Vincom Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam JSCmmercial and Vincom Retail
The main advantage of trading using opposite Vietnam JSCmmercial and Vincom Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam JSCmmercial position performs unexpectedly, Vincom Retail 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 Vincom Retail will offset losses from the drop in Vincom Retail'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 |
| Vincom Retail vs. Nafoods Group JSC | Vincom Retail vs. Bao Ngoc Investment | Vincom Retail vs. Long An Food | Vincom Retail vs. Investment and Industrial |
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.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |