Correlation Between Techcom Vietnam and Bao Ngoc
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By analyzing existing cross correlation between Techcom Vietnam REIT and Bao Ngoc Investment, you can compare the effects of market volatilities on Techcom Vietnam and Bao Ngoc 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 Techcom Vietnam with a short position of Bao Ngoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techcom Vietnam and Bao Ngoc.
Diversification Opportunities for Techcom Vietnam and Bao Ngoc
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Techcom and Bao is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Techcom Vietnam REIT and Bao Ngoc Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bao Ngoc Investment and Techcom Vietnam 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 Techcom Vietnam REIT are associated (or correlated) with Bao Ngoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bao Ngoc Investment has no effect on the direction of Techcom Vietnam i.e., Techcom Vietnam and Bao Ngoc go up and down completely randomly.
Pair Corralation between Techcom Vietnam and Bao Ngoc
Assuming the 90 days trading horizon Techcom Vietnam REIT is expected to under-perform the Bao Ngoc. In addition to that, Techcom Vietnam is 1.38 times more volatile than Bao Ngoc Investment. It trades about 0.0 of its total potential returns per unit of risk. Bao Ngoc Investment is currently generating about 0.04 per unit of volatility. If you would invest 944,000 in Bao Ngoc Investment on September 2, 2024 and sell it today you would earn a total of 16,000 from holding Bao Ngoc Investment or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Techcom Vietnam REIT vs. Bao Ngoc Investment
Performance |
| Timeline |
| Techcom Vietnam REIT |
| Bao Ngoc Investment |
Techcom Vietnam and Bao Ngoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techcom Vietnam and Bao Ngoc
The main advantage of trading using opposite Techcom Vietnam and Bao Ngoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techcom Vietnam position performs unexpectedly, Bao Ngoc 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 Bao Ngoc will offset losses from the drop in Bao Ngoc's long position.| Techcom Vietnam vs. Transport and Industry | Techcom Vietnam vs. PetroVietnam Transportation Corp | Techcom Vietnam vs. Nam Kim Steel | Techcom Vietnam vs. Pacific Petroleum Transportation |
| Bao Ngoc vs. Innovative Technology Development | Bao Ngoc vs. Saigon Viendong Technology | Bao Ngoc vs. Petrovietnam Drilling Mud | Bao Ngoc vs. Construction And 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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