Correlation Between Hochiminh City and Van Dien
Can any of the company-specific risk be diversified away by investing in both Hochiminh City and Van Dien 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 Van Dien 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 Van Dien Fused, you can compare the effects of market volatilities on Hochiminh City and Van Dien 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 Van Dien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochiminh City and Van Dien.
Diversification Opportunities for Hochiminh City and Van Dien
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hochiminh and Van is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hochiminh City Metal and Van Dien Fused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Dien Fused 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 Van Dien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Dien Fused has no effect on the direction of Hochiminh City i.e., Hochiminh City and Van Dien go up and down completely randomly.
Pair Corralation between Hochiminh City and Van Dien
If you would invest 1,085,000 in Hochiminh City Metal on September 16, 2024 and sell it today you would earn a total of 55,000 from holding Hochiminh City Metal or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hochiminh City Metal vs. Van Dien Fused
Performance |
| Timeline |
| Hochiminh City Metal |
| Van Dien Fused |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hochiminh City and Van Dien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochiminh City and Van Dien
The main advantage of trading using opposite Hochiminh City and Van Dien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochiminh City position performs unexpectedly, Van Dien 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 Van Dien will offset losses from the drop in Van Dien's long position.| Hochiminh City vs. FIT INVEST JSC | Hochiminh City vs. Damsan JSC | Hochiminh City vs. An Phat Plastic | Hochiminh City vs. Alphanam ME |
| Van Dien vs. Pha Lai Thermal | Van Dien vs. BIDV Insurance Corp | Van Dien vs. Elcom Technology Communications | Van Dien vs. CEO Group 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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