Correlation Between Viettel Construction and Phat Dat
Can any of the company-specific risk be diversified away by investing in both Viettel Construction and Phat Dat 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 Phat Dat 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 Phat Dat Real, you can compare the effects of market volatilities on Viettel Construction and Phat Dat 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 Phat Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viettel Construction and Phat Dat.
Diversification Opportunities for Viettel Construction and Phat Dat
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Viettel and Phat is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Viettel Construction JSC and Phat Dat Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phat Dat Real 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 Phat Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phat Dat Real has no effect on the direction of Viettel Construction i.e., Viettel Construction and Phat Dat go up and down completely randomly.
Pair Corralation between Viettel Construction and Phat Dat
Assuming the 90 days trading horizon Viettel Construction JSC is expected to generate 1.06 times more return on investment than Phat Dat. However, Viettel Construction is 1.06 times more volatile than Phat Dat Real. It trades about 0.08 of its potential returns per unit of risk. Phat Dat Real is currently generating about 0.01 per unit of risk. If you would invest 8,300,376 in Viettel Construction JSC on September 12, 2024 and sell it today you would earn a total of 4,019,624 from holding Viettel Construction JSC or generate 48.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viettel Construction JSC vs. Phat Dat Real
Performance |
| Timeline |
| Viettel Construction JSC |
| Phat Dat Real |
Viettel Construction and Phat Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viettel Construction and Phat Dat
The main advantage of trading using opposite Viettel Construction and Phat Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viettel Construction position performs unexpectedly, Phat Dat 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 Phat Dat will offset losses from the drop in Phat Dat's long position.| Viettel Construction vs. Transimex Transportation JSC | Viettel Construction vs. Fecon Mining JSC | Viettel Construction vs. Ducgiang Chemicals Detergent | Viettel Construction vs. Phuoc Hoa Rubber |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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