Correlation Between Viettel Construction and Tng Investment
Can any of the company-specific risk be diversified away by investing in both Viettel Construction and Tng Investment 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 Tng Investment 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 Tng Investment And, you can compare the effects of market volatilities on Viettel Construction and Tng Investment 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 Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viettel Construction and Tng Investment.
Diversification Opportunities for Viettel Construction and Tng Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Viettel and Tng is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Viettel Construction JSC and Tng Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tng Investment 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 Tng Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tng Investment And has no effect on the direction of Viettel Construction i.e., Viettel Construction and Tng Investment go up and down completely randomly.
Pair Corralation between Viettel Construction and Tng Investment
Assuming the 90 days trading horizon Viettel Construction JSC is expected to generate 1.29 times more return on investment than Tng Investment. However, Viettel Construction is 1.29 times more volatile than Tng Investment And. It trades about -0.01 of its potential returns per unit of risk. Tng Investment And is currently generating about -0.05 per unit of risk. If you would invest 13,053,900 in Viettel Construction JSC on October 18, 2024 and sell it today you would lose (453,900) from holding Viettel Construction JSC or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viettel Construction JSC vs. Tng Investment And
Performance |
| Timeline |
| Viettel Construction JSC |
| Tng Investment And |
Viettel Construction and Tng Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viettel Construction and Tng Investment
The main advantage of trading using opposite Viettel Construction and Tng Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viettel Construction position performs unexpectedly, Tng Investment 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 Tng Investment will offset losses from the drop in Tng Investment's long position.| Viettel Construction vs. POST TELECOMMU | Viettel Construction vs. Telecoms Informatics JSC | Viettel Construction vs. Elcom Technology Communications | Viettel Construction vs. BaoMinh Insurance Corp |
| Tng Investment vs. Viettel Construction JSC | Tng Investment vs. TDT Investment and | Tng Investment vs. Danang Education Investment | Tng Investment vs. Dinhvu Port Investment |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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