Correlation Between HNX 30 and South Basic
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By analyzing existing cross correlation between HNX 30 and South Basic Chemicals, you can compare the effects of market volatilities on HNX 30 and South Basic 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 HNX 30 with a short position of South Basic. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and South Basic.
Diversification Opportunities for HNX 30 and South Basic
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HNX and South is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and South Basic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Basic Chemicals and HNX 30 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 HNX 30 are associated (or correlated) with South Basic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Basic Chemicals has no effect on the direction of HNX 30 i.e., HNX 30 and South Basic go up and down completely randomly.
Pair Corralation between HNX 30 and South Basic
Assuming the 90 days trading horizon HNX 30 is expected to under-perform the South Basic. But the index apears to be less risky and, when comparing its historical volatility, HNX 30 is 3.4 times less risky than South Basic. The index trades about -0.12 of its potential returns per unit of risk. The South Basic Chemicals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,530,000 in South Basic Chemicals on August 28, 2024 and sell it today you would earn a total of 160,000 from holding South Basic Chemicals or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNX 30 vs. South Basic Chemicals
Performance |
| Timeline |
HNX 30 and South Basic Volatility Contrast
Predicted Return Density |
| Returns |
HNX 30
Pair trading matchups for HNX 30
South Basic Chemicals
Pair trading matchups for South Basic
Pair Trading with HNX 30 and South Basic
The main advantage of trading using opposite HNX 30 and South Basic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 position performs unexpectedly, South Basic 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 South Basic will offset losses from the drop in South Basic's long position.| HNX 30 vs. Hochiminh City Metal | HNX 30 vs. VTC Telecommunications JSC | HNX 30 vs. Pacific Petroleum Transportation | HNX 30 vs. Danang Education Investment |
| South Basic vs. FIT INVEST JSC | South Basic vs. Damsan JSC | South Basic vs. An Phat Plastic | South Basic 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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