Correlation Between Sao Ta and VTC Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Sao Ta and VTC 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 Sao Ta and VTC Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sao Ta Foods and VTC Telecommunications JSC, you can compare the effects of market volatilities on Sao Ta and VTC 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 Sao Ta with a short position of VTC Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sao Ta and VTC Telecommunicatio.
Diversification Opportunities for Sao Ta and VTC Telecommunicatio
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sao and VTC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sao Ta Foods and VTC Telecommunications JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTC Telecommunications and Sao Ta 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 Sao Ta Foods are associated (or correlated) with VTC Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTC Telecommunications has no effect on the direction of Sao Ta i.e., Sao Ta and VTC Telecommunicatio go up and down completely randomly.
Pair Corralation between Sao Ta and VTC Telecommunicatio
Assuming the 90 days trading horizon Sao Ta Foods is expected to generate 0.33 times more return on investment than VTC Telecommunicatio. However, Sao Ta Foods is 3.07 times less risky than VTC Telecommunicatio. It trades about 0.23 of its potential returns per unit of risk. VTC Telecommunications JSC is currently generating about 0.07 per unit of risk. If you would invest 4,580,000 in Sao Ta Foods on September 1, 2024 and sell it today you would earn a total of 240,000 from holding Sao Ta Foods or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Sao Ta Foods vs. VTC Telecommunications JSC
Performance |
| Timeline |
| Sao Ta Foods |
| VTC Telecommunications |
Sao Ta and VTC Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sao Ta and VTC Telecommunicatio
The main advantage of trading using opposite Sao Ta and VTC Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sao Ta position performs unexpectedly, VTC 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 VTC Telecommunicatio will offset losses from the drop in VTC Telecommunicatio's long position.| Sao Ta vs. BaoMinh Insurance Corp | Sao Ta vs. Dong Nai Plastic | Sao Ta vs. Ben Thanh Rubber | Sao Ta vs. Thong Nhat Rubber |
| VTC Telecommunicatio vs. Everland Investment JSC | VTC Telecommunicatio vs. BIDV Insurance Corp | VTC Telecommunicatio vs. Tng Investment And | VTC Telecommunicatio vs. IDJ FINANCIAL |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |