Correlation Between VietinBank Securities and VTC Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both VietinBank Securities and VTC Telecommunicatio 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 VTC Telecommunicatio 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 VTC Telecommunications JSC, you can compare the effects of market volatilities on VietinBank Securities and VTC Telecommunicatio 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 VTC Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of VietinBank Securities and VTC Telecommunicatio.
Diversification Opportunities for VietinBank Securities and VTC Telecommunicatio
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between VietinBank and VTC is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding VietinBank Securities JSC and VTC Telecommunications JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTC Telecommunications 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 VTC Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTC Telecommunications has no effect on the direction of VietinBank Securities i.e., VietinBank Securities and VTC Telecommunicatio go up and down completely randomly.
Pair Corralation between VietinBank Securities and VTC Telecommunicatio
Assuming the 90 days trading horizon VietinBank Securities JSC is expected to generate 0.58 times more return on investment than VTC Telecommunicatio. However, VietinBank Securities JSC is 1.71 times less risky than VTC Telecommunicatio. It trades about 0.08 of its potential returns per unit of risk. VTC Telecommunications JSC is currently generating about 0.01 per unit of risk. If you would invest 1,370,000 in VietinBank Securities JSC on September 12, 2024 and sell it today you would earn a total of 2,235,000 from holding VietinBank Securities JSC or generate 163.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.88% |
| Values | Daily Returns |
VietinBank Securities JSC vs. VTC Telecommunications JSC
Performance |
| Timeline |
| VietinBank Securities JSC |
| VTC Telecommunications |
VietinBank Securities and VTC Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VietinBank Securities and VTC Telecommunicatio
The main advantage of trading using opposite VietinBank Securities and VTC Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VietinBank Securities position performs unexpectedly, VTC Telecommunicatio 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 VTC Telecommunicatio will offset losses from the drop in VTC Telecommunicatio's long position.| VietinBank Securities vs. FIT INVEST JSC | VietinBank Securities vs. Damsan JSC | VietinBank Securities vs. An Phat Plastic | VietinBank Securities vs. Alphanam ME |
| VTC Telecommunicatio vs. Song Hong Garment | VTC Telecommunicatio vs. Alphanam ME | VTC Telecommunicatio vs. Hochiminh City Metal | VTC Telecommunicatio vs. Atesco Industrial Cartering |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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