Correlation Between Industrial Urban and Saigon Viendong
Can any of the company-specific risk be diversified away by investing in both Industrial Urban and Saigon Viendong 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 Industrial Urban and Saigon Viendong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrial Urban Development and Saigon Viendong Technology, you can compare the effects of market volatilities on Industrial Urban and Saigon Viendong 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 Industrial Urban with a short position of Saigon Viendong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Urban and Saigon Viendong.
Diversification Opportunities for Industrial Urban and Saigon Viendong
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Saigon is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Urban Development and Saigon Viendong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Viendong Tech and Industrial Urban 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 Industrial Urban Development are associated (or correlated) with Saigon Viendong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Viendong Tech has no effect on the direction of Industrial Urban i.e., Industrial Urban and Saigon Viendong go up and down completely randomly.
Pair Corralation between Industrial Urban and Saigon Viendong
Assuming the 90 days trading horizon Industrial Urban Development is expected to generate 1.04 times more return on investment than Saigon Viendong. However, Industrial Urban is 1.04 times more volatile than Saigon Viendong Technology. It trades about 0.07 of its potential returns per unit of risk. Saigon Viendong Technology is currently generating about 0.03 per unit of risk. If you would invest 1,802,397 in Industrial Urban Development on August 31, 2024 and sell it today you would earn a total of 1,412,603 from holding Industrial Urban Development or generate 78.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.69% |
| Values | Daily Returns |
Industrial Urban Development vs. Saigon Viendong Technology
Performance |
| Timeline |
| Industrial Urban Dev |
| Saigon Viendong Tech |
Industrial Urban and Saigon Viendong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Urban and Saigon Viendong
The main advantage of trading using opposite Industrial Urban and Saigon Viendong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Urban position performs unexpectedly, Saigon Viendong 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 Saigon Viendong will offset losses from the drop in Saigon Viendong's long position.| Industrial Urban vs. FIT INVEST JSC | Industrial Urban vs. Damsan JSC | Industrial Urban vs. An Phat Plastic | Industrial Urban vs. Alphanam ME |
| Saigon Viendong vs. Bao Ngoc Investment | Saigon Viendong vs. Techcom Vietnam REIT | Saigon Viendong vs. Din Capital Investment | Saigon Viendong vs. PetroVietnam Drilling Well |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |