Correlation Between Techcom Vietnam and Viet Capital
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By analyzing existing cross correlation between Techcom Vietnam REIT and Viet Capital Securities, you can compare the effects of market volatilities on Techcom Vietnam and Viet Capital 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 Viet Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techcom Vietnam and Viet Capital.
Diversification Opportunities for Techcom Vietnam and Viet Capital
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Techcom and Viet is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Techcom Vietnam REIT and Viet Capital Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viet Capital Securities 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 Viet Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viet Capital Securities has no effect on the direction of Techcom Vietnam i.e., Techcom Vietnam and Viet Capital go up and down completely randomly.
Pair Corralation between Techcom Vietnam and Viet Capital
Assuming the 90 days trading horizon Techcom Vietnam is expected to generate 12.51 times less return on investment than Viet Capital. In addition to that, Techcom Vietnam is 1.13 times more volatile than Viet Capital Securities. It trades about 0.0 of its total potential returns per unit of risk. Viet Capital Securities is currently generating about 0.05 per unit of volatility. If you would invest 1,805,818 in Viet Capital Securities on September 2, 2024 and sell it today you would earn a total of 1,504,182 from holding Viet Capital Securities or generate 83.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.47% |
| Values | Daily Returns |
Techcom Vietnam REIT vs. Viet Capital Securities
Performance |
| Timeline |
| Techcom Vietnam REIT |
| Viet Capital Securities |
Techcom Vietnam and Viet Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techcom Vietnam and Viet Capital
The main advantage of trading using opposite Techcom Vietnam and Viet Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techcom Vietnam position performs unexpectedly, Viet Capital 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 Viet Capital will offset losses from the drop in Viet Capital'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 |
| Viet Capital vs. FIT INVEST JSC | Viet Capital vs. Damsan JSC | Viet Capital vs. An Phat Plastic | Viet Capital 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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