Correlation Between Vietnam Medicinal and VINACAPITAL VN100
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By analyzing existing cross correlation between Vietnam Medicinal Materials and VINACAPITAL VN100 ETF, you can compare the effects of market volatilities on Vietnam Medicinal and VINACAPITAL VN100 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 VINACAPITAL VN100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Medicinal and VINACAPITAL VN100.
Diversification Opportunities for Vietnam Medicinal and VINACAPITAL VN100
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vietnam and VINACAPITAL is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Medicinal Materials and VINACAPITAL VN100 ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VINACAPITAL VN100 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 VINACAPITAL VN100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VINACAPITAL VN100 ETF has no effect on the direction of Vietnam Medicinal i.e., Vietnam Medicinal and VINACAPITAL VN100 go up and down completely randomly.
Pair Corralation between Vietnam Medicinal and VINACAPITAL VN100
Assuming the 90 days trading horizon Vietnam Medicinal Materials is expected to under-perform the VINACAPITAL VN100. In addition to that, Vietnam Medicinal is 2.77 times more volatile than VINACAPITAL VN100 ETF. It trades about -0.05 of its total potential returns per unit of risk. VINACAPITAL VN100 ETF is currently generating about 0.1 per unit of volatility. If you would invest 1,475,000 in VINACAPITAL VN100 ETF on September 14, 2024 and sell it today you would earn a total of 315,000 from holding VINACAPITAL VN100 ETF or generate 21.36% 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. VINACAPITAL VN100 ETF
Performance |
| Timeline |
| Vietnam Medicinal |
| VINACAPITAL VN100 ETF |
Vietnam Medicinal and VINACAPITAL VN100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Medicinal and VINACAPITAL VN100
The main advantage of trading using opposite Vietnam Medicinal and VINACAPITAL VN100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Medicinal position performs unexpectedly, VINACAPITAL VN100 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 VINACAPITAL VN100 will offset losses from the drop in VINACAPITAL VN100'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 |
| VINACAPITAL VN100 vs. Idico JSC | VINACAPITAL VN100 vs. Song Hong Garment | VINACAPITAL VN100 vs. Vietnam Medicinal Materials | VINACAPITAL VN100 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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