Correlation Between Techcom Vietnam and Elcom Technology
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By analyzing existing cross correlation between Techcom Vietnam REIT and Elcom Technology Communications, you can compare the effects of market volatilities on Techcom Vietnam and Elcom Technology 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 Elcom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techcom Vietnam and Elcom Technology.
Diversification Opportunities for Techcom Vietnam and Elcom Technology
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Techcom and Elcom is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Techcom Vietnam REIT and Elcom Technology Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elcom Technology Com 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 Elcom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elcom Technology Com has no effect on the direction of Techcom Vietnam i.e., Techcom Vietnam and Elcom Technology go up and down completely randomly.
Pair Corralation between Techcom Vietnam and Elcom Technology
Assuming the 90 days trading horizon Techcom Vietnam REIT is expected to under-perform the Elcom Technology. In addition to that, Techcom Vietnam is 2.14 times more volatile than Elcom Technology Communications. It trades about -0.18 of its total potential returns per unit of risk. Elcom Technology Communications is currently generating about 0.07 per unit of volatility. If you would invest 2,730,000 in Elcom Technology Communications on November 3, 2024 and sell it today you would earn a total of 55,000 from holding Elcom Technology Communications or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Techcom Vietnam REIT vs. Elcom Technology Communication
Performance |
| Timeline |
| Techcom Vietnam REIT |
| Elcom Technology Com |
Techcom Vietnam and Elcom Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techcom Vietnam and Elcom Technology
The main advantage of trading using opposite Techcom Vietnam and Elcom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techcom Vietnam position performs unexpectedly, Elcom Technology 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 Elcom Technology will offset losses from the drop in Elcom Technology's long position.| Techcom Vietnam vs. FIT INVEST JSC | Techcom Vietnam vs. Damsan JSC | Techcom Vietnam vs. An Phat Plastic | Techcom Vietnam vs. APG Securities Joint |
| Elcom Technology vs. Song Hong Aluminum | Elcom Technology vs. Vietnam Technological And | Elcom Technology vs. Transport and Industry | Elcom Technology vs. Vietnam Rubber Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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