Correlation Between Fecon Mining and Vietnam JSCmmercial
Can any of the company-specific risk be diversified away by investing in both Fecon Mining and Vietnam JSCmmercial 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 Fecon Mining and Vietnam JSCmmercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fecon Mining JSC and Vietnam JSCmmercial Bank, you can compare the effects of market volatilities on Fecon Mining and Vietnam JSCmmercial 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 Fecon Mining with a short position of Vietnam JSCmmercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and Vietnam JSCmmercial.
Diversification Opportunities for Fecon Mining and Vietnam JSCmmercial
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fecon and Vietnam is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining JSC and Vietnam JSCmmercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam JSCmmercial Bank and Fecon Mining 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 Fecon Mining JSC are associated (or correlated) with Vietnam JSCmmercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam JSCmmercial Bank has no effect on the direction of Fecon Mining i.e., Fecon Mining and Vietnam JSCmmercial go up and down completely randomly.
Pair Corralation between Fecon Mining and Vietnam JSCmmercial
Assuming the 90 days trading horizon Fecon Mining JSC is expected to under-perform the Vietnam JSCmmercial. In addition to that, Fecon Mining is 1.07 times more volatile than Vietnam JSCmmercial Bank. It trades about -0.18 of its total potential returns per unit of risk. Vietnam JSCmmercial Bank is currently generating about 0.02 per unit of volatility. If you would invest 3,570,000 in Vietnam JSCmmercial Bank on September 3, 2024 and sell it today you would earn a total of 15,000 from holding Vietnam JSCmmercial Bank or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fecon Mining JSC vs. Vietnam JSCmmercial Bank
Performance |
| Timeline |
| Fecon Mining JSC |
| Vietnam JSCmmercial Bank |
Fecon Mining and Vietnam JSCmmercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fecon Mining and Vietnam JSCmmercial
The main advantage of trading using opposite Fecon Mining and Vietnam JSCmmercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining position performs unexpectedly, Vietnam JSCmmercial 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 Vietnam JSCmmercial will offset losses from the drop in Vietnam JSCmmercial's long position.| Fecon Mining vs. FIT INVEST JSC | Fecon Mining vs. Damsan JSC | Fecon Mining vs. An Phat Plastic | Fecon Mining vs. Alphanam ME |
| Vietnam JSCmmercial vs. FIT INVEST JSC | Vietnam JSCmmercial vs. Damsan JSC | Vietnam JSCmmercial vs. An Phat Plastic | Vietnam JSCmmercial 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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