Correlation Between Hochiminh City and KIM GROWTH
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By analyzing existing cross correlation between Hochiminh City Metal and KIM GROWTH VN, you can compare the effects of market volatilities on Hochiminh City and KIM GROWTH 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 KIM GROWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochiminh City and KIM GROWTH.
Diversification Opportunities for Hochiminh City and KIM GROWTH
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hochiminh and KIM is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hochiminh City Metal and KIM GROWTH VN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM GROWTH VN 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 KIM GROWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM GROWTH VN has no effect on the direction of Hochiminh City i.e., Hochiminh City and KIM GROWTH go up and down completely randomly.
Pair Corralation between Hochiminh City and KIM GROWTH
Assuming the 90 days trading horizon Hochiminh City Metal is expected to generate 0.78 times more return on investment than KIM GROWTH. However, Hochiminh City Metal is 1.28 times less risky than KIM GROWTH. It trades about 0.13 of its potential returns per unit of risk. KIM GROWTH VN is currently generating about -0.22 per unit of risk. If you would invest 1,095,000 in Hochiminh City Metal on September 3, 2024 and sell it today you would earn a total of 25,000 from holding Hochiminh City Metal or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Hochiminh City Metal vs. KIM GROWTH VN
Performance |
| Timeline |
| Hochiminh City Metal |
| KIM GROWTH VN |
Hochiminh City and KIM GROWTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochiminh City and KIM GROWTH
The main advantage of trading using opposite Hochiminh City and KIM GROWTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochiminh City position performs unexpectedly, KIM GROWTH 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 KIM GROWTH will offset losses from the drop in KIM GROWTH's long position.| Hochiminh City vs. Tien Phong Plastic | Hochiminh City vs. Southern Rubber Industry | Hochiminh City vs. Saigon Telecommunication Technologies | Hochiminh City vs. VTC Telecommunications JSC |
| KIM GROWTH vs. Idico JSC | KIM GROWTH vs. Song Hong Garment | KIM GROWTH vs. Alphanam ME | KIM GROWTH vs. Hochiminh City Metal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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