Correlation Between VietinBank Securities and Investment
Can any of the company-specific risk be diversified away by investing in both VietinBank Securities and 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 VietinBank Securities and Investment 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 Investment And Construction, you can compare the effects of market volatilities on VietinBank Securities and 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 VietinBank Securities with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of VietinBank Securities and Investment.
Diversification Opportunities for VietinBank Securities and Investment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VietinBank and Investment is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding VietinBank Securities JSC and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of VietinBank Securities i.e., VietinBank Securities and Investment go up and down completely randomly.
Pair Corralation between VietinBank Securities and Investment
Assuming the 90 days trading horizon VietinBank Securities JSC is expected to generate 0.99 times more return on investment than Investment. However, VietinBank Securities JSC is 1.01 times less risky than Investment. It trades about -0.28 of its potential returns per unit of risk. Investment And Construction is currently generating about -0.37 per unit of risk. If you would invest 3,615,000 in VietinBank Securities JSC on October 17, 2024 and sell it today you would lose (275,000) from holding VietinBank Securities JSC or give up 7.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
VietinBank Securities JSC vs. Investment And Construction
Performance |
| Timeline |
| VietinBank Securities JSC |
| Investment And Const |
VietinBank Securities and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VietinBank Securities and Investment
The main advantage of trading using opposite VietinBank Securities and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VietinBank Securities position performs unexpectedly, 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 Investment will offset losses from the drop in Investment'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 |
| Investment vs. Elcom Technology Communications | Investment vs. VietinBank Securities JSC | Investment vs. Military Insurance Corp | Investment vs. Vietnam Technological And |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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