Correlation Between VietinBank Securities and AgriBank Securities
Can any of the company-specific risk be diversified away by investing in both VietinBank Securities and AgriBank Securities 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 VietinBank Securities and AgriBank Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VietinBank Securities JSC and AgriBank Securities JSC, you can compare the effects of market volatilities on VietinBank Securities and AgriBank Securities 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 VietinBank Securities with a short position of AgriBank Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of VietinBank Securities and AgriBank Securities.
Diversification Opportunities for VietinBank Securities and AgriBank Securities
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VietinBank and AgriBank is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding VietinBank Securities JSC and AgriBank Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriBank Securities JSC and VietinBank Securities 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 VietinBank Securities JSC are associated (or correlated) with AgriBank Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriBank Securities JSC has no effect on the direction of VietinBank Securities i.e., VietinBank Securities and AgriBank Securities go up and down completely randomly.
Pair Corralation between VietinBank Securities and AgriBank Securities
Assuming the 90 days trading horizon VietinBank Securities JSC is expected to under-perform the AgriBank Securities. In addition to that, VietinBank Securities is 1.24 times more volatile than AgriBank Securities JSC. It trades about -0.18 of its total potential returns per unit of risk. AgriBank Securities JSC is currently generating about -0.2 per unit of volatility. If you would invest 1,710,000 in AgriBank Securities JSC on November 3, 2024 and sell it today you would lose (75,000) from holding AgriBank Securities JSC or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VietinBank Securities JSC vs. AgriBank Securities JSC
Performance |
| Timeline |
| VietinBank Securities JSC |
| AgriBank Securities JSC |
VietinBank Securities and AgriBank Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VietinBank Securities and AgriBank Securities
The main advantage of trading using opposite VietinBank Securities and AgriBank Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VietinBank Securities position performs unexpectedly, AgriBank Securities 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 AgriBank Securities will offset losses from the drop in AgriBank Securities' long position.| VietinBank Securities vs. Sea Air Freight | VietinBank Securities vs. IDJ FINANCIAL | VietinBank Securities vs. Military Insurance Corp | VietinBank Securities vs. DOMESCO Medical Import |
| AgriBank Securities vs. FIT INVEST JSC | AgriBank Securities vs. Damsan JSC | AgriBank Securities vs. An Phat Plastic | AgriBank Securities vs. APG Securities Joint |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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