Correlation Between Vietnam Medicinal and SSIAM VN30
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By analyzing existing cross correlation between Vietnam Medicinal Materials and SSIAM VN30 ETF, you can compare the effects of market volatilities on Vietnam Medicinal and SSIAM VN30 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 SSIAM VN30. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Medicinal and SSIAM VN30.
Diversification Opportunities for Vietnam Medicinal and SSIAM VN30
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vietnam and SSIAM is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Medicinal Materials and SSIAM VN30 ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSIAM VN30 ETF 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 SSIAM VN30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSIAM VN30 ETF has no effect on the direction of Vietnam Medicinal i.e., Vietnam Medicinal and SSIAM VN30 go up and down completely randomly.
Pair Corralation between Vietnam Medicinal and SSIAM VN30
Assuming the 90 days trading horizon Vietnam Medicinal Materials is expected to under-perform the SSIAM VN30. In addition to that, Vietnam Medicinal is 1.93 times more volatile than SSIAM VN30 ETF. It trades about -0.03 of its total potential returns per unit of risk. SSIAM VN30 ETF is currently generating about 0.06 per unit of volatility. If you would invest 1,214,000 in SSIAM VN30 ETF on September 14, 2024 and sell it today you would earn a total of 452,000 from holding SSIAM VN30 ETF or generate 37.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam Medicinal Materials vs. SSIAM VN30 ETF
Performance |
| Timeline |
| Vietnam Medicinal |
| SSIAM VN30 ETF |
Vietnam Medicinal and SSIAM VN30 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Medicinal and SSIAM VN30
The main advantage of trading using opposite Vietnam Medicinal and SSIAM VN30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Medicinal position performs unexpectedly, SSIAM VN30 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 SSIAM VN30 will offset losses from the drop in SSIAM VN30'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 |
| SSIAM VN30 vs. Idico JSC | SSIAM VN30 vs. Song Hong Garment | SSIAM VN30 vs. Vietnam Medicinal Materials | SSIAM VN30 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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