Correlation Between Hochiminh City and HNX 30
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By analyzing existing cross correlation between Hochiminh City Metal and HNX 30, you can compare the effects of market volatilities on Hochiminh City and HNX 30 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 HNX 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochiminh City and HNX 30.
Diversification Opportunities for Hochiminh City and HNX 30
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hochiminh and HNX is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hochiminh City Metal and HNX 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNX 30 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 HNX 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNX 30 has no effect on the direction of Hochiminh City i.e., Hochiminh City and HNX 30 go up and down completely randomly.
Pair Corralation between Hochiminh City and HNX 30
Assuming the 90 days trading horizon Hochiminh City Metal is expected to under-perform the HNX 30. In addition to that, Hochiminh City is 2.88 times more volatile than HNX 30. It trades about -0.31 of its total potential returns per unit of risk. HNX 30 is currently generating about -0.18 per unit of volatility. If you would invest 47,929 in HNX 30 on November 3, 2024 and sell it today you would lose (1,544) from holding HNX 30 or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochiminh City Metal vs. HNX 30
Performance |
| Timeline |
Hochiminh City and HNX 30 Volatility Contrast
Predicted Return Density |
| Returns |
Hochiminh City Metal
Pair trading matchups for Hochiminh City
HNX 30
Pair trading matchups for HNX 30
Pair Trading with Hochiminh City and HNX 30
The main advantage of trading using opposite Hochiminh City and HNX 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochiminh City position performs unexpectedly, HNX 30 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 HNX 30 will offset losses from the drop in HNX 30's long position.| Hochiminh City vs. Vietnam Construction JSC | Hochiminh City vs. South Basic Chemicals | Hochiminh City vs. HUD1 Investment and | Hochiminh City vs. Visicons Construction and |
| HNX 30 vs. Military Insurance Corp | HNX 30 vs. BaoMinh Insurance Corp | HNX 30 vs. Sao Ta Foods | HNX 30 vs. Long An Food |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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