Correlation Between Viettel Construction and Hung Hau
Can any of the company-specific risk be diversified away by investing in both Viettel Construction and Hung Hau 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 Hung Hau 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 Hung Hau Agricultural, you can compare the effects of market volatilities on Viettel Construction and Hung Hau 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 Hung Hau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viettel Construction and Hung Hau.
Diversification Opportunities for Viettel Construction and Hung Hau
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Viettel and Hung is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Viettel Construction JSC and Hung Hau Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hung Hau Agricultural 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 Hung Hau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hung Hau Agricultural has no effect on the direction of Viettel Construction i.e., Viettel Construction and Hung Hau go up and down completely randomly.
Pair Corralation between Viettel Construction and Hung Hau
Assuming the 90 days trading horizon Viettel Construction JSC is expected to under-perform the Hung Hau. But the stock apears to be less risky and, when comparing its historical volatility, Viettel Construction JSC is 1.03 times less risky than Hung Hau. The stock trades about -0.18 of its potential returns per unit of risk. The Hung Hau Agricultural is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 980,000 in Hung Hau Agricultural on August 30, 2024 and sell it today you would earn a total of 120,000 from holding Hung Hau Agricultural or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Viettel Construction JSC vs. Hung Hau Agricultural
Performance |
| Timeline |
| Viettel Construction JSC |
| Hung Hau Agricultural |
Viettel Construction and Hung Hau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viettel Construction and Hung Hau
The main advantage of trading using opposite Viettel Construction and Hung Hau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viettel Construction position performs unexpectedly, Hung Hau 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 Hung Hau will offset losses from the drop in Hung Hau's long position.| Viettel Construction vs. Sea Air Freight | Viettel Construction vs. DOMESCO Medical Import | Viettel Construction vs. Military Insurance Corp | Viettel Construction vs. Japan Vietnam Medical |
| Hung Hau vs. PetroVietnam Transportation Corp | Hung Hau vs. Travel Investment and | Hung Hau vs. Nam Long Investment | Hung Hau vs. Ba Ria Thermal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |