Correlation Between Vietnam Medicinal and KIM GROWTH
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By analyzing existing cross correlation between Vietnam Medicinal Materials and KIM GROWTH VN30, you can compare the effects of market volatilities on Vietnam Medicinal and KIM GROWTH 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 Vietnam Medicinal with a short position of KIM GROWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Medicinal and KIM GROWTH.
Diversification Opportunities for Vietnam Medicinal and KIM GROWTH
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vietnam and KIM is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Medicinal Materials and KIM GROWTH VN30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM GROWTH VN30 and Vietnam Medicinal 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 Vietnam Medicinal Materials are associated (or correlated) with KIM GROWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM GROWTH VN30 has no effect on the direction of Vietnam Medicinal i.e., Vietnam Medicinal and KIM GROWTH go up and down completely randomly.
Pair Corralation between Vietnam Medicinal and KIM GROWTH
Assuming the 90 days trading horizon Vietnam Medicinal Materials is expected to under-perform the KIM GROWTH. In addition to that, Vietnam Medicinal is 1.81 times more volatile than KIM GROWTH VN30. It trades about -0.03 of its total potential returns per unit of risk. KIM GROWTH VN30 is currently generating about 0.05 per unit of volatility. If you would invest 655,000 in KIM GROWTH VN30 on September 14, 2024 and sell it today you would earn a total of 237,000 from holding KIM GROWTH VN30 or generate 36.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Vietnam Medicinal Materials vs. KIM GROWTH VN30
Performance |
| Timeline |
| Vietnam Medicinal |
| KIM GROWTH VN30 |
Vietnam Medicinal and KIM GROWTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Medicinal and KIM GROWTH
The main advantage of trading using opposite Vietnam Medicinal and KIM GROWTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Medicinal position performs unexpectedly, KIM GROWTH 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 KIM GROWTH will offset losses from the drop in KIM GROWTH's long position.| Vietnam Medicinal vs. Song Hong Garment | Vietnam Medicinal vs. Alphanam ME | Vietnam Medicinal vs. Hochiminh City Metal | Vietnam Medicinal vs. Atesco Industrial Cartering |
| KIM GROWTH vs. Idico JSC | KIM GROWTH vs. Song Hong Garment | KIM GROWTH vs. Vietnam Medicinal Materials | KIM GROWTH 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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