Correlation Between VietinBank Securities and Elcom Technology
Can any of the company-specific risk be diversified away by investing in both VietinBank Securities and Elcom Technology 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 Elcom Technology 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 Elcom Technology Communications, you can compare the effects of market volatilities on VietinBank Securities and Elcom Technology 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 Elcom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of VietinBank Securities and Elcom Technology.
Diversification Opportunities for VietinBank Securities and Elcom Technology
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VietinBank and Elcom is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding VietinBank Securities JSC and Elcom Technology Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elcom Technology Com 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 Elcom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elcom Technology Com has no effect on the direction of VietinBank Securities i.e., VietinBank Securities and Elcom Technology go up and down completely randomly.
Pair Corralation between VietinBank Securities and Elcom Technology
Assuming the 90 days trading horizon VietinBank Securities is expected to generate 1.04 times less return on investment than Elcom Technology. In addition to that, VietinBank Securities is 1.08 times more volatile than Elcom Technology Communications. It trades about 0.07 of its total potential returns per unit of risk. Elcom Technology Communications is currently generating about 0.08 per unit of volatility. If you would invest 1,130,000 in Elcom Technology Communications on October 9, 2024 and sell it today you would earn a total of 1,490,000 from holding Elcom Technology Communications or generate 131.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VietinBank Securities JSC vs. Elcom Technology Communication
Performance |
| Timeline |
| VietinBank Securities JSC |
| Elcom Technology Com |
VietinBank Securities and Elcom Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VietinBank Securities and Elcom Technology
The main advantage of trading using opposite VietinBank Securities and Elcom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VietinBank Securities position performs unexpectedly, Elcom Technology 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 Elcom Technology will offset losses from the drop in Elcom Technology's long position.| VietinBank Securities vs. FIT INVEST JSC | VietinBank Securities vs. Damsan JSC | VietinBank Securities vs. An Phat Plastic | VietinBank Securities vs. APG Securities Joint |
| Elcom Technology vs. Investment and Industrial | Elcom Technology vs. Vina2 Investment and | Elcom Technology vs. Long An Food | Elcom Technology vs. SMC Investment Trading |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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