Correlation Between Hai An and Saigon Viendong
Can any of the company-specific risk be diversified away by investing in both Hai An and Saigon Viendong 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 Saigon Viendong 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 Saigon Viendong Technology, you can compare the effects of market volatilities on Hai An and Saigon Viendong 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 Saigon Viendong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and Saigon Viendong.
Diversification Opportunities for Hai An and Saigon Viendong
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hai and Saigon is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport and Saigon Viendong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Viendong Tech 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 Saigon Viendong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Viendong Tech has no effect on the direction of Hai An i.e., Hai An and Saigon Viendong go up and down completely randomly.
Pair Corralation between Hai An and Saigon Viendong
Assuming the 90 days trading horizon Hai An Transport is expected to generate 1.01 times more return on investment than Saigon Viendong. However, Hai An is 1.01 times more volatile than Saigon Viendong Technology. It trades about 0.08 of its potential returns per unit of risk. Saigon Viendong Technology is currently generating about 0.04 per unit of risk. If you would invest 2,197,101 in Hai An Transport on October 30, 2024 and sell it today you would earn a total of 2,772,899 from holding Hai An Transport or generate 126.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
Hai An Transport vs. Saigon Viendong Technology
Performance |
| Timeline |
| Hai An Transport |
| Saigon Viendong Tech |
Hai An and Saigon Viendong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hai An and Saigon Viendong
The main advantage of trading using opposite Hai An and Saigon Viendong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An position performs unexpectedly, Saigon Viendong 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 Saigon Viendong will offset losses from the drop in Saigon Viendong's long position.| Hai An vs. PVI Reinsurance Corp | Hai An vs. HUD1 Investment and | Hai An vs. Vien Dong Investment | Hai An vs. Military Insurance Corp |
| Saigon Viendong vs. Petrolimex Petrochemical JSC | Saigon Viendong vs. PostTelecommunication Equipment | Saigon Viendong vs. Transport and Industry | Saigon Viendong vs. Saigon Telecommunication Technologies |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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