Correlation Between Viettel Construction and Saigon Viendong
Can any of the company-specific risk be diversified away by investing in both Viettel Construction and Saigon Viendong 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 Saigon Viendong 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 Saigon Viendong Technology, you can compare the effects of market volatilities on Viettel Construction and Saigon Viendong 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 Saigon Viendong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viettel Construction and Saigon Viendong.
Diversification Opportunities for Viettel Construction and Saigon Viendong
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Viettel and Saigon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Viettel Construction JSC and Saigon Viendong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Viendong Tech 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 Saigon Viendong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Viendong Tech has no effect on the direction of Viettel Construction i.e., Viettel Construction and Saigon Viendong go up and down completely randomly.
Pair Corralation between Viettel Construction and Saigon Viendong
Assuming the 90 days trading horizon Viettel Construction JSC is expected to generate 0.94 times more return on investment than Saigon Viendong. However, Viettel Construction JSC is 1.06 times less risky than Saigon Viendong. It trades about 0.08 of its potential returns per unit of risk. Saigon Viendong Technology is currently generating about 0.03 per unit of risk. If you would invest 6,219,882 in Viettel Construction JSC on August 31, 2024 and sell it today you would earn a total of 5,540,118 from holding Viettel Construction JSC or generate 89.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.69% |
| Values | Daily Returns |
Viettel Construction JSC vs. Saigon Viendong Technology
Performance |
| Timeline |
| Viettel Construction JSC |
| Saigon Viendong Tech |
Viettel Construction and Saigon Viendong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viettel Construction and Saigon Viendong
The main advantage of trading using opposite Viettel Construction and Saigon Viendong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viettel Construction position performs unexpectedly, Saigon Viendong 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 Saigon Viendong will offset losses from the drop in Saigon Viendong'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 |
| Saigon Viendong vs. Bao Ngoc Investment | Saigon Viendong vs. Techcom Vietnam REIT | Saigon Viendong vs. Din Capital Investment | Saigon Viendong vs. PetroVietnam Drilling Well |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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