Correlation Between SSIAM VN30 and SSIAM VNX50
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By analyzing existing cross correlation between SSIAM VN30 ETF and SSIAM VNX50 ETF, you can compare the effects of market volatilities on SSIAM VN30 and SSIAM VNX50 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 SSIAM VN30 with a short position of SSIAM VNX50. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSIAM VN30 and SSIAM VNX50.
Diversification Opportunities for SSIAM VN30 and SSIAM VNX50
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SSIAM and SSIAM is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SSIAM VN30 ETF and SSIAM VNX50 ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSIAM VNX50 ETF and SSIAM VN30 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 SSIAM VN30 ETF are associated (or correlated) with SSIAM VNX50. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSIAM VNX50 ETF has no effect on the direction of SSIAM VN30 i.e., SSIAM VN30 and SSIAM VNX50 go up and down completely randomly.
Pair Corralation between SSIAM VN30 and SSIAM VNX50
Assuming the 90 days trading horizon SSIAM VN30 is expected to generate 1.26 times less return on investment than SSIAM VNX50. But when comparing it to its historical volatility, SSIAM VN30 ETF is 1.53 times less risky than SSIAM VNX50. It trades about 0.05 of its potential returns per unit of risk. SSIAM VNX50 ETF is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,500,000 in SSIAM VNX50 ETF on September 3, 2024 and sell it today you would earn a total of 454,000 from holding SSIAM VNX50 ETF or generate 30.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSIAM VN30 ETF vs. SSIAM VNX50 ETF
Performance |
| Timeline |
| SSIAM VN30 ETF |
| SSIAM VNX50 ETF |
SSIAM VN30 and SSIAM VNX50 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSIAM VN30 and SSIAM VNX50
The main advantage of trading using opposite SSIAM VN30 and SSIAM VNX50 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSIAM VN30 position performs unexpectedly, SSIAM VNX50 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 SSIAM VNX50 will offset losses from the drop in SSIAM VNX50's long position.| SSIAM VN30 vs. Idico JSC | SSIAM VN30 vs. Song Hong Garment | SSIAM VN30 vs. Alphanam ME | SSIAM VN30 vs. Hochiminh City Metal |
| SSIAM VNX50 vs. Idico JSC | SSIAM VNX50 vs. Song Hong Garment | SSIAM VNX50 vs. Alphanam ME | SSIAM VNX50 vs. Hochiminh City Metal |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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