Correlation Between Hochiminh City and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both Hochiminh City and Thanh Dat 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 Thanh Dat 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 Thanh Dat Investment, you can compare the effects of market volatilities on Hochiminh City and Thanh Dat 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 Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochiminh City and Thanh Dat.
Diversification Opportunities for Hochiminh City and Thanh Dat
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hochiminh and Thanh is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hochiminh City Metal and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat Investment 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 Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of Hochiminh City i.e., Hochiminh City and Thanh Dat go up and down completely randomly.
Pair Corralation between Hochiminh City and Thanh Dat
Assuming the 90 days trading horizon Hochiminh City Metal is expected to generate 1.35 times more return on investment than Thanh Dat. However, Hochiminh City is 1.35 times more volatile than Thanh Dat Investment. It trades about 0.07 of its potential returns per unit of risk. Thanh Dat Investment is currently generating about -0.07 per unit of risk. If you would invest 1,090,000 in Hochiminh City Metal on October 26, 2024 and sell it today you would earn a total of 70,000 from holding Hochiminh City Metal or generate 6.42% 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. Thanh Dat Investment
Performance |
| Timeline |
| Hochiminh City Metal |
| Thanh Dat Investment |
Hochiminh City and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochiminh City and Thanh Dat
The main advantage of trading using opposite Hochiminh City and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochiminh City position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's long position.| Hochiminh City vs. FIT INVEST JSC | Hochiminh City vs. Damsan JSC | Hochiminh City vs. An Phat Plastic | Hochiminh City vs. APG Securities Joint |
| Thanh Dat vs. FIT INVEST JSC | Thanh Dat vs. Damsan JSC | Thanh Dat vs. An Phat Plastic | Thanh Dat vs. APG Securities Joint |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |