Correlation Between Hai An and Japan Vietnam
Can any of the company-specific risk be diversified away by investing in both Hai An and Japan Vietnam 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 Hai An and Japan Vietnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hai An Transport and Japan Vietnam Medical, you can compare the effects of market volatilities on Hai An and Japan Vietnam 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 Hai An with a short position of Japan Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and Japan Vietnam.
Diversification Opportunities for Hai An and Japan Vietnam
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hai and Japan is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport and Japan Vietnam Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Vietnam Medical and Hai An 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 Hai An Transport are associated (or correlated) with Japan Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Vietnam Medical has no effect on the direction of Hai An i.e., Hai An and Japan Vietnam go up and down completely randomly.
Pair Corralation between Hai An and Japan Vietnam
Assuming the 90 days trading horizon Hai An Transport is expected to generate 1.4 times more return on investment than Japan Vietnam. However, Hai An is 1.4 times more volatile than Japan Vietnam Medical. It trades about 0.05 of its potential returns per unit of risk. Japan Vietnam Medical is currently generating about -0.06 per unit of risk. If you would invest 4,290,000 in Hai An Transport on September 2, 2024 and sell it today you would earn a total of 515,000 from holding Hai An Transport or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hai An Transport vs. Japan Vietnam Medical
Performance |
| Timeline |
| Hai An Transport |
| Japan Vietnam Medical |
Hai An and Japan Vietnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hai An and Japan Vietnam
The main advantage of trading using opposite Hai An and Japan Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An position performs unexpectedly, Japan Vietnam 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 Japan Vietnam will offset losses from the drop in Japan Vietnam's long position.| Hai An vs. FPT Digital Retail | Hai An vs. IDJ FINANCIAL | Hai An vs. CEO Group JSC | Hai An vs. Vincom Retail JSC |
| Japan Vietnam vs. 1369 Construction JSC | Japan Vietnam vs. CEO Group JSC | Japan Vietnam vs. Development Investment Construction | Japan Vietnam vs. Petrolimex Insurance Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |