Correlation Between SSIAM VNFIN and Song Hong
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By analyzing existing cross correlation between SSIAM VNFIN LEAD and Song Hong Garment, you can compare the effects of market volatilities on SSIAM VNFIN and Song Hong 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 VNFIN with a short position of Song Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSIAM VNFIN and Song Hong.
Diversification Opportunities for SSIAM VNFIN and Song Hong
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SSIAM and Song is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SSIAM VNFIN LEAD and Song Hong Garment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Hong Garment and SSIAM VNFIN 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 VNFIN LEAD are associated (or correlated) with Song Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Hong Garment has no effect on the direction of SSIAM VNFIN i.e., SSIAM VNFIN and Song Hong go up and down completely randomly.
Pair Corralation between SSIAM VNFIN and Song Hong
Assuming the 90 days trading horizon SSIAM VNFIN is expected to generate 3.51 times less return on investment than Song Hong. But when comparing it to its historical volatility, SSIAM VNFIN LEAD is 1.3 times less risky than Song Hong. It trades about 0.05 of its potential returns per unit of risk. Song Hong Garment is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,485,882 in Song Hong Garment on September 2, 2024 and sell it today you would earn a total of 434,118 from holding Song Hong Garment or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSIAM VNFIN LEAD vs. Song Hong Garment
Performance |
| Timeline |
| SSIAM VNFIN LEAD |
| Song Hong Garment |
SSIAM VNFIN and Song Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSIAM VNFIN and Song Hong
The main advantage of trading using opposite SSIAM VNFIN and Song Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSIAM VNFIN position performs unexpectedly, Song Hong 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 Song Hong will offset losses from the drop in Song Hong's long position.| SSIAM VNFIN vs. Idico JSC | SSIAM VNFIN vs. Song Hong Garment | SSIAM VNFIN vs. DHG Pharmaceutical JSC | SSIAM VNFIN vs. Alphanam ME |
| Song Hong vs. FIT INVEST JSC | Song Hong vs. Damsan JSC | Song Hong vs. An Phat Plastic | Song Hong 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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