Correlation Between Dinhvu Port and Saigon Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Dinhvu Port and Saigon Telecommunicatio 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 Dinhvu Port and Saigon Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dinhvu Port Investment and Saigon Telecommunication Technologies, you can compare the effects of market volatilities on Dinhvu Port and Saigon Telecommunicatio 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 Dinhvu Port with a short position of Saigon Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dinhvu Port and Saigon Telecommunicatio.
Diversification Opportunities for Dinhvu Port and Saigon Telecommunicatio
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dinhvu and Saigon is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dinhvu Port Investment and Saigon Telecommunication Techn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Telecommunicatio and Dinhvu Port 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 Dinhvu Port Investment are associated (or correlated) with Saigon Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Telecommunicatio has no effect on the direction of Dinhvu Port i.e., Dinhvu Port and Saigon Telecommunicatio go up and down completely randomly.
Pair Corralation between Dinhvu Port and Saigon Telecommunicatio
Assuming the 90 days trading horizon Dinhvu Port Investment is expected to generate 0.48 times more return on investment than Saigon Telecommunicatio. However, Dinhvu Port Investment is 2.06 times less risky than Saigon Telecommunicatio. It trades about -0.11 of its potential returns per unit of risk. Saigon Telecommunication Technologies is currently generating about -0.06 per unit of risk. If you would invest 7,780,000 in Dinhvu Port Investment on September 4, 2024 and sell it today you would lose (150,000) from holding Dinhvu Port Investment or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dinhvu Port Investment vs. Saigon Telecommunication Techn
Performance |
| Timeline |
| Dinhvu Port Investment |
| Saigon Telecommunicatio |
Dinhvu Port and Saigon Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dinhvu Port and Saigon Telecommunicatio
The main advantage of trading using opposite Dinhvu Port and Saigon Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dinhvu Port position performs unexpectedly, Saigon Telecommunicatio 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 Saigon Telecommunicatio will offset losses from the drop in Saigon Telecommunicatio's long position.| Dinhvu Port vs. FIT INVEST JSC | Dinhvu Port vs. Damsan JSC | Dinhvu Port vs. An Phat Plastic | Dinhvu Port vs. Alphanam ME |
| Saigon Telecommunicatio vs. Transport and Industry | Saigon Telecommunicatio vs. 577 Investment Corp | Saigon Telecommunicatio vs. Ba Ria Thermal | Saigon Telecommunicatio vs. Dinhvu Port Investment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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