Correlation Between HNX 30 and Cotec Construction
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By analyzing existing cross correlation between HNX 30 and Cotec Construction JSC, you can compare the effects of market volatilities on HNX 30 and Cotec Construction 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 Cotec Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and Cotec Construction.
Diversification Opportunities for HNX 30 and Cotec Construction
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HNX and Cotec is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and Cotec Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cotec Construction JSC 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 Cotec Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cotec Construction JSC has no effect on the direction of HNX 30 i.e., HNX 30 and Cotec Construction go up and down completely randomly.
Pair Corralation between HNX 30 and Cotec Construction
Assuming the 90 days trading horizon HNX 30 is expected to under-perform the Cotec Construction. But the index apears to be less risky and, when comparing its historical volatility, HNX 30 is 1.95 times less risky than Cotec Construction. The index trades about -0.12 of its potential returns per unit of risk. The Cotec Construction JSC is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 6,700,000 in Cotec Construction JSC on August 31, 2024 and sell it today you would lose (142,000) from holding Cotec Construction JSC or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNX 30 vs. Cotec Construction JSC
Performance |
| Timeline |
HNX 30 and Cotec Construction Volatility Contrast
Predicted Return Density |
| Returns |
HNX 30
Pair trading matchups for HNX 30
Cotec Construction JSC
Pair trading matchups for Cotec Construction
Pair Trading with HNX 30 and Cotec Construction
The main advantage of trading using opposite HNX 30 and Cotec Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 position performs unexpectedly, Cotec Construction 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 Cotec Construction will offset losses from the drop in Cotec Construction's long position.| HNX 30 vs. PVI Reinsurance Corp | HNX 30 vs. Binh Duong Trade | HNX 30 vs. Vietnam JSCmmercial Bank | HNX 30 vs. Petrolimex Insurance Corp |
| Cotec Construction vs. FIT INVEST JSC | Cotec Construction vs. Damsan JSC | Cotec Construction vs. An Phat Plastic | Cotec Construction vs. Alphanam ME |
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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