Correlation Between VINACAPITAL VN100 and Van Dien
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By analyzing existing cross correlation between VINACAPITAL VN100 ETF and Van Dien Fused, you can compare the effects of market volatilities on VINACAPITAL VN100 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 VINACAPITAL VN100 with a short position of Van Dien. Check out your portfolio center. Please also check ongoing floating volatility patterns of VINACAPITAL VN100 and Van Dien.
Diversification Opportunities for VINACAPITAL VN100 and Van Dien
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VINACAPITAL and Van is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding VINACAPITAL VN100 ETF 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 VINACAPITAL VN100 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 VINACAPITAL VN100 ETF 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 VINACAPITAL VN100 i.e., VINACAPITAL VN100 and Van Dien go up and down completely randomly.
Pair Corralation between VINACAPITAL VN100 and Van Dien
Assuming the 90 days trading horizon VINACAPITAL VN100 is expected to generate 3.67 times less return on investment than Van Dien. But when comparing it to its historical volatility, VINACAPITAL VN100 ETF is 4.03 times less risky than Van Dien. It trades about 0.01 of its potential returns per unit of risk. Van Dien Fused is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,350,000 in Van Dien Fused on September 13, 2024 and sell it today you would lose (20,000) from holding Van Dien Fused or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 57.94% |
| Values | Daily Returns |
VINACAPITAL VN100 ETF vs. Van Dien Fused
Performance |
| Timeline |
| VINACAPITAL VN100 ETF |
| Van Dien Fused |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VINACAPITAL VN100 and Van Dien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VINACAPITAL VN100 and Van Dien
The main advantage of trading using opposite VINACAPITAL VN100 and Van Dien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VINACAPITAL VN100 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.| VINACAPITAL VN100 vs. Idico JSC | VINACAPITAL VN100 vs. Song Hong Garment | VINACAPITAL VN100 vs. Vietnam Medicinal Materials | VINACAPITAL VN100 vs. Alphanam ME |
| Van Dien vs. Din Capital Investment | Van Dien vs. Bich Chi Food | Van Dien vs. Long An Food | Van Dien vs. Dong A Hotel |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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