Correlation Between KIM GROWTH and Van Dien

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both KIM GROWTH and Van Dien 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 KIM GROWTH and Van Dien into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIM GROWTH VN and Van Dien Fused, you can compare the effects of market volatilities on KIM GROWTH and Van Dien 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 KIM GROWTH with a short position of Van Dien. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIM GROWTH and Van Dien.

Diversification Opportunities for KIM GROWTH and Van Dien

-0.22
  Correlation Coefficient

Very good diversification

The 3 months correlation between KIM and Van is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding KIM GROWTH VN and Van Dien Fused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Dien Fused and KIM GROWTH 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 KIM GROWTH VN are associated (or correlated) with Van Dien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Dien Fused has no effect on the direction of KIM GROWTH i.e., KIM GROWTH and Van Dien go up and down completely randomly.

Pair Corralation between KIM GROWTH and Van Dien

Assuming the 90 days trading horizon KIM GROWTH is expected to generate 1.03 times less return on investment than Van Dien. But when comparing it to its historical volatility, KIM GROWTH VN is 3.3 times less risky than Van Dien. It trades about 0.09 of its potential returns per unit of risk. Van Dien Fused is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,233,725  in Van Dien Fused on September 12, 2024 and sell it today you would earn a total of  96,275  from holding Van Dien Fused or generate 7.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy44.05%
ValuesDaily Returns

KIM GROWTH VN  vs.  Van Dien Fused

 Performance 
       Timeline  
KIM GROWTH VN 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days KIM GROWTH VN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, KIM GROWTH is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Van Dien Fused 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days Van Dien Fused has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very unfluctuating technical and fundamental indicators, Van Dien may actually be approaching a critical reversion point that can send shares even higher in January 2025.

KIM GROWTH and Van Dien Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with KIM GROWTH and Van Dien

The main advantage of trading using opposite KIM GROWTH and Van Dien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIM GROWTH position performs unexpectedly, Van Dien 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 Van Dien will offset losses from the drop in Van Dien's long position.
KIM GROWTH vs. Idico JSC
KIM GROWTH vs. Song Hong Garment
KIM GROWTH vs. Vietnam Medicinal Materials
KIM GROWTH vs. Alphanam ME
The idea behind KIM GROWTH VN and Van Dien Fused pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Van Dien vs. Dong Nai Plastic
Van Dien vs. Tien Phong Plastic
Van Dien vs. Tay Ninh Rubber
Van Dien vs. Industrial Urban Development
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY