Correlation Between Elcom Technology and Techcom Vietnam
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By analyzing existing cross correlation between Elcom Technology Communications and Techcom Vietnam REIT, you can compare the effects of market volatilities on Elcom Technology and Techcom Vietnam 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 Elcom Technology with a short position of Techcom Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom Technology and Techcom Vietnam.
Diversification Opportunities for Elcom Technology and Techcom Vietnam
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elcom and Techcom is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Elcom Technology Communication and Techcom Vietnam REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techcom Vietnam REIT and Elcom Technology 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 Elcom Technology Communications are associated (or correlated) with Techcom Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techcom Vietnam REIT has no effect on the direction of Elcom Technology i.e., Elcom Technology and Techcom Vietnam go up and down completely randomly.
Pair Corralation between Elcom Technology and Techcom Vietnam
Assuming the 90 days trading horizon Elcom Technology Communications is expected to under-perform the Techcom Vietnam. But the stock apears to be less risky and, when comparing its historical volatility, Elcom Technology Communications is 1.77 times less risky than Techcom Vietnam. The stock trades about -0.02 of its potential returns per unit of risk. The Techcom Vietnam REIT is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 585,000 in Techcom Vietnam REIT on September 2, 2024 and sell it today you would lose (54,000) from holding Techcom Vietnam REIT or give up 9.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.47% |
| Values | Daily Returns |
Elcom Technology Communication vs. Techcom Vietnam REIT
Performance |
| Timeline |
| Elcom Technology Com |
| Techcom Vietnam REIT |
Elcom Technology and Techcom Vietnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom Technology and Techcom Vietnam
The main advantage of trading using opposite Elcom Technology and Techcom Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom Technology position performs unexpectedly, Techcom Vietnam 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 Techcom Vietnam will offset losses from the drop in Techcom Vietnam's long position.| Elcom Technology vs. Dinhvu Port Investment | Elcom Technology vs. PV2 Investment JSC | Elcom Technology vs. TDG Global Investment | Elcom Technology vs. TDT Investment and |
| Techcom Vietnam vs. Transport and Industry | Techcom Vietnam vs. PetroVietnam Transportation Corp | Techcom Vietnam vs. Nam Kim Steel | Techcom Vietnam vs. Pacific Petroleum Transportation |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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