Correlation Between Hai An and VTC Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Hai An and VTC Telecommunicatio 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 VTC Telecommunicatio 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 VTC Telecommunications JSC, you can compare the effects of market volatilities on Hai An and VTC Telecommunicatio 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 VTC Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and VTC Telecommunicatio.
Diversification Opportunities for Hai An and VTC Telecommunicatio
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hai and VTC is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport and VTC Telecommunications JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTC Telecommunications 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 VTC Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTC Telecommunications has no effect on the direction of Hai An i.e., Hai An and VTC Telecommunicatio go up and down completely randomly.
Pair Corralation between Hai An and VTC Telecommunicatio
Assuming the 90 days trading horizon Hai An Transport is expected to generate 0.5 times more return on investment than VTC Telecommunicatio. However, Hai An Transport is 2.0 times less risky than VTC Telecommunicatio. It trades about 0.08 of its potential returns per unit of risk. VTC Telecommunications JSC is currently generating about 0.02 per unit of risk. If you would invest 2,011,594 in Hai An Transport on September 2, 2024 and sell it today you would earn a total of 2,793,406 from holding Hai An Transport or generate 138.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.98% |
| Values | Daily Returns |
Hai An Transport vs. VTC Telecommunications JSC
Performance |
| Timeline |
| Hai An Transport |
| VTC Telecommunications |
Hai An and VTC Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hai An and VTC Telecommunicatio
The main advantage of trading using opposite Hai An and VTC Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An position performs unexpectedly, VTC Telecommunicatio 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 VTC Telecommunicatio will offset losses from the drop in VTC Telecommunicatio'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 |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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