Correlation Between Duong Hieu and Vincom Retail
Can any of the company-specific risk be diversified away by investing in both Duong Hieu and Vincom Retail 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 Duong Hieu and Vincom Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duong Hieu Trading and Vincom Retail JSC, you can compare the effects of market volatilities on Duong Hieu and Vincom Retail 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 Duong Hieu with a short position of Vincom Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duong Hieu and Vincom Retail.
Diversification Opportunities for Duong Hieu and Vincom Retail
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duong and Vincom is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Duong Hieu Trading and Vincom Retail JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vincom Retail JSC and Duong Hieu 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 Duong Hieu Trading are associated (or correlated) with Vincom Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vincom Retail JSC has no effect on the direction of Duong Hieu i.e., Duong Hieu and Vincom Retail go up and down completely randomly.
Pair Corralation between Duong Hieu and Vincom Retail
Assuming the 90 days trading horizon Duong Hieu Trading is expected to generate 1.08 times more return on investment than Vincom Retail. However, Duong Hieu is 1.08 times more volatile than Vincom Retail JSC. It trades about -0.01 of its potential returns per unit of risk. Vincom Retail JSC is currently generating about -0.04 per unit of risk. If you would invest 840,000 in Duong Hieu Trading on August 31, 2024 and sell it today you would lose (130,000) from holding Duong Hieu Trading or give up 15.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Duong Hieu Trading vs. Vincom Retail JSC
Performance |
| Timeline |
| Duong Hieu Trading |
| Vincom Retail JSC |
Duong Hieu and Vincom Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duong Hieu and Vincom Retail
The main advantage of trading using opposite Duong Hieu and Vincom Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duong Hieu position performs unexpectedly, Vincom Retail 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 Vincom Retail will offset losses from the drop in Vincom Retail's long position.| Duong Hieu vs. FIT INVEST JSC | Duong Hieu vs. Damsan JSC | Duong Hieu vs. An Phat Plastic | Duong Hieu vs. Alphanam ME |
| Vincom Retail vs. FIT INVEST JSC | Vincom Retail vs. Damsan JSC | Vincom Retail vs. An Phat Plastic | Vincom Retail vs. Alphanam ME |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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