Correlation Between Vinacomin Power and Alphanam
Can any of the company-specific risk be diversified away by investing in both Vinacomin Power and Alphanam 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 Vinacomin Power and Alphanam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinacomin Power Holding and Alphanam ME, you can compare the effects of market volatilities on Vinacomin Power and Alphanam 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 Vinacomin Power with a short position of Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinacomin Power and Alphanam.
Diversification Opportunities for Vinacomin Power and Alphanam
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vinacomin and Alphanam is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Vinacomin Power Holding and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME and Vinacomin Power 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 Vinacomin Power Holding are associated (or correlated) with Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of Vinacomin Power i.e., Vinacomin Power and Alphanam go up and down completely randomly.
Pair Corralation between Vinacomin Power and Alphanam
Assuming the 90 days trading horizon Vinacomin Power Holding is expected to generate 0.81 times more return on investment than Alphanam. However, Vinacomin Power Holding is 1.23 times less risky than Alphanam. It trades about 0.03 of its potential returns per unit of risk. Alphanam ME is currently generating about -0.1 per unit of risk. If you would invest 1,075,313 in Vinacomin Power Holding on September 4, 2024 and sell it today you would earn a total of 114,687 from holding Vinacomin Power Holding or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 59.41% |
| Values | Daily Returns |
Vinacomin Power Holding vs. Alphanam ME
Performance |
| Timeline |
| Vinacomin Power Holding |
| Alphanam ME |
Vinacomin Power and Alphanam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinacomin Power and Alphanam
The main advantage of trading using opposite Vinacomin Power and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinacomin Power position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.| Vinacomin Power vs. Alphanam ME | Vinacomin Power vs. Hochiminh City Metal | Vinacomin Power vs. Atesco Industrial Cartering | Vinacomin Power vs. Danang Education Investment |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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