Correlation Between Hochiminh City and CEO Group
Can any of the company-specific risk be diversified away by investing in both Hochiminh City and CEO 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 Hochiminh City and CEO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hochiminh City Metal and CEO Group JSC, you can compare the effects of market volatilities on Hochiminh City and CEO 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 Hochiminh City with a short position of CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochiminh City and CEO Group.
Diversification Opportunities for Hochiminh City and CEO Group
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hochiminh and CEO is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hochiminh City Metal and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group JSC and Hochiminh City 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 Hochiminh City Metal are associated (or correlated) with CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of Hochiminh City i.e., Hochiminh City and CEO Group go up and down completely randomly.
Pair Corralation between Hochiminh City and CEO Group
Assuming the 90 days trading horizon Hochiminh City Metal is expected to generate 0.53 times more return on investment than CEO Group. However, Hochiminh City Metal is 1.88 times less risky than CEO Group. It trades about 0.03 of its potential returns per unit of risk. CEO Group JSC is currently generating about 0.0 per unit of risk. If you would invest 967,965 in Hochiminh City Metal on October 30, 2024 and sell it today you would earn a total of 182,035 from holding Hochiminh City Metal or generate 18.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochiminh City Metal vs. CEO Group JSC
Performance |
| Timeline |
| Hochiminh City Metal |
| CEO Group JSC |
Hochiminh City and CEO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochiminh City and CEO Group
The main advantage of trading using opposite Hochiminh City and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochiminh City position performs unexpectedly, CEO 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 CEO Group will offset losses from the drop in CEO Group's long position.| Hochiminh City vs. Duong Hieu Trading | Hochiminh City vs. Tien Giang Investment | Hochiminh City vs. FPT Digital Retail | Hochiminh City vs. HUD1 Investment and |
| CEO Group vs. HVC Investment and | CEO Group vs. Tng Investment And | CEO Group vs. PV2 Investment JSC | CEO Group vs. Thong Nhat Rubber |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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