Correlation Between VietinBank Securities and Viet Thanh
Can any of the company-specific risk be diversified away by investing in both VietinBank Securities and Viet Thanh 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 Viet Thanh 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 Viet Thanh Plastic, you can compare the effects of market volatilities on VietinBank Securities and Viet Thanh 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 Viet Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of VietinBank Securities and Viet Thanh.
Diversification Opportunities for VietinBank Securities and Viet Thanh
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VietinBank and Viet is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding VietinBank Securities JSC and Viet Thanh Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viet Thanh Plastic 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 Viet Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viet Thanh Plastic has no effect on the direction of VietinBank Securities i.e., VietinBank Securities and Viet Thanh go up and down completely randomly.
Pair Corralation between VietinBank Securities and Viet Thanh
Assuming the 90 days trading horizon VietinBank Securities JSC is expected to under-perform the Viet Thanh. In addition to that, VietinBank Securities is 1.08 times more volatile than Viet Thanh Plastic. It trades about -0.16 of its total potential returns per unit of risk. Viet Thanh Plastic is currently generating about 0.12 per unit of volatility. If you would invest 1,630,000 in Viet Thanh Plastic on September 1, 2024 and sell it today you would earn a total of 70,000 from holding Viet Thanh Plastic or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VietinBank Securities JSC vs. Viet Thanh Plastic
Performance |
| Timeline |
| VietinBank Securities JSC |
| Viet Thanh Plastic |
VietinBank Securities and Viet Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VietinBank Securities and Viet Thanh
The main advantage of trading using opposite VietinBank Securities and Viet Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VietinBank Securities position performs unexpectedly, Viet Thanh 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 Viet Thanh will offset losses from the drop in Viet Thanh'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 |
| Viet Thanh vs. Hanoi Beer Alcohol | Viet Thanh vs. PetroVietnam Drilling Well | Viet Thanh vs. Saigon Beer Alcohol | Viet Thanh vs. BaoMinh Insurance Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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