Correlation Between Viettel Construction and Agriculture Printing
Can any of the company-specific risk be diversified away by investing in both Viettel Construction and Agriculture Printing 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 Viettel Construction and Agriculture Printing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viettel Construction JSC and Agriculture Printing and, you can compare the effects of market volatilities on Viettel Construction and Agriculture Printing 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 Viettel Construction with a short position of Agriculture Printing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viettel Construction and Agriculture Printing.
Diversification Opportunities for Viettel Construction and Agriculture Printing
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Viettel and Agriculture is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Viettel Construction JSC and Agriculture Printing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agriculture Printing and and Viettel 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 Viettel Construction JSC are associated (or correlated) with Agriculture Printing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agriculture Printing and has no effect on the direction of Viettel Construction i.e., Viettel Construction and Agriculture Printing go up and down completely randomly.
Pair Corralation between Viettel Construction and Agriculture Printing
Assuming the 90 days trading horizon Viettel Construction JSC is expected to under-perform the Agriculture Printing. In addition to that, Viettel Construction is 1.33 times more volatile than Agriculture Printing and. It trades about -0.14 of its total potential returns per unit of risk. Agriculture Printing and is currently generating about -0.11 per unit of volatility. If you would invest 5,670,000 in Agriculture Printing and on August 31, 2024 and sell it today you would lose (270,000) from holding Agriculture Printing and or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Viettel Construction JSC vs. Agriculture Printing and
Performance |
| Timeline |
| Viettel Construction JSC |
| Agriculture Printing and |
Viettel Construction and Agriculture Printing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viettel Construction and Agriculture Printing
The main advantage of trading using opposite Viettel Construction and Agriculture Printing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viettel Construction position performs unexpectedly, Agriculture Printing 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 Agriculture Printing will offset losses from the drop in Agriculture Printing's long position.| Viettel Construction vs. FIT INVEST JSC | Viettel Construction vs. Damsan JSC | Viettel Construction vs. An Phat Plastic | Viettel Construction vs. Alphanam ME |
| Agriculture Printing vs. FIT INVEST JSC | Agriculture Printing vs. Damsan JSC | Agriculture Printing vs. An Phat Plastic | Agriculture Printing vs. Alphanam ME |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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