Correlation Between Hochiminh City and Camimex Group
Can any of the company-specific risk be diversified away by investing in both Hochiminh City and Camimex 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 Camimex 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 Camimex Group JSC, you can compare the effects of market volatilities on Hochiminh City and Camimex 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 Camimex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochiminh City and Camimex Group.
Diversification Opportunities for Hochiminh City and Camimex Group
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hochiminh and Camimex is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hochiminh City Metal and Camimex Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camimex 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 Camimex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camimex Group JSC has no effect on the direction of Hochiminh City i.e., Hochiminh City and Camimex Group go up and down completely randomly.
Pair Corralation between Hochiminh City and Camimex Group
Assuming the 90 days trading horizon Hochiminh City Metal is expected to generate 3.04 times more return on investment than Camimex Group. However, Hochiminh City is 3.04 times more volatile than Camimex Group JSC. It trades about 0.03 of its potential returns per unit of risk. Camimex Group JSC is currently generating about -0.11 per unit of risk. If you would invest 1,150,000 in Hochiminh City Metal on October 21, 2024 and sell it today you would earn a total of 15,000 from holding Hochiminh City Metal or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochiminh City Metal vs. Camimex Group JSC
Performance |
| Timeline |
| Hochiminh City Metal |
| Camimex Group JSC |
Hochiminh City and Camimex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochiminh City and Camimex Group
The main advantage of trading using opposite Hochiminh City and Camimex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochiminh City position performs unexpectedly, Camimex 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 Camimex Group will offset losses from the drop in Camimex Group's long position.| Hochiminh City vs. Development Investment Construction | Hochiminh City vs. Kien Giang Construction | Hochiminh City vs. Ducgiang Chemicals Detergent | Hochiminh City vs. Binhthuan Agriculture Services |
| Camimex Group vs. Pha Lai Thermal | Camimex Group vs. Tien Giang Investment | Camimex Group vs. HUD1 Investment and | Camimex Group vs. Transimex Transportation JSC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |