Correlation Between Hai An and Vinacontrol Group
Can any of the company-specific risk be diversified away by investing in both Hai An and Vinacontrol Group 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 Vinacontrol Group 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 Vinacontrol Group Corp, you can compare the effects of market volatilities on Hai An and Vinacontrol Group 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 Vinacontrol Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and Vinacontrol Group.
Diversification Opportunities for Hai An and Vinacontrol Group
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hai and Vinacontrol is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport and Vinacontrol Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinacontrol Group Corp 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 Vinacontrol Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinacontrol Group Corp has no effect on the direction of Hai An i.e., Hai An and Vinacontrol Group go up and down completely randomly.
Pair Corralation between Hai An and Vinacontrol Group
Assuming the 90 days trading horizon Hai An Transport is expected to generate 0.64 times more return on investment than Vinacontrol Group. However, Hai An Transport is 1.56 times less risky than Vinacontrol Group. It trades about 0.1 of its potential returns per unit of risk. Vinacontrol Group Corp is currently generating about 0.0 per unit of risk. If you would invest 3,121,739 in Hai An Transport on September 14, 2024 and sell it today you would earn a total of 1,868,261 from holding Hai An Transport or generate 59.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.83% |
| Values | Daily Returns |
Hai An Transport vs. Vinacontrol Group Corp
Performance |
| Timeline |
| Hai An Transport |
| Vinacontrol Group Corp |
Hai An and Vinacontrol Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hai An and Vinacontrol Group
The main advantage of trading using opposite Hai An and Vinacontrol Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An position performs unexpectedly, Vinacontrol Group 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 Vinacontrol Group will offset losses from the drop in Vinacontrol Group's long position.| Hai An vs. 1369 Construction JSC | Hai An vs. Techno Agricultural Supplying | Hai An vs. Saigon Viendong Technology | Hai An vs. Binh Duong Construction |
| Vinacontrol Group vs. Hai An Transport | Vinacontrol Group vs. Global Electrical Technology | Vinacontrol Group vs. Dinhvu Port Investment | Vinacontrol Group vs. Hanoi Beer Alcohol |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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