Correlation Between HNX 30 and Long Giang
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By analyzing existing cross correlation between HNX 30 and Long Giang Investment, you can compare the effects of market volatilities on HNX 30 and Long Giang 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 Long Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and Long Giang.
Diversification Opportunities for HNX 30 and Long Giang
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HNX and Long is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and Long Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Giang Investment 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 Long Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Giang Investment has no effect on the direction of HNX 30 i.e., HNX 30 and Long Giang go up and down completely randomly.
Pair Corralation between HNX 30 and Long Giang
Assuming the 90 days trading horizon HNX 30 is expected to under-perform the Long Giang. But the index apears to be less risky and, when comparing its historical volatility, HNX 30 is 2.49 times less risky than Long Giang. The index trades about -0.39 of its potential returns per unit of risk. The Long Giang Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 248,000 in Long Giang Investment on October 12, 2024 and sell it today you would earn a total of 6,000 from holding Long Giang Investment or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNX 30 vs. Long Giang Investment
Performance |
| Timeline |
HNX 30 and Long Giang Volatility Contrast
Predicted Return Density |
| Returns |
HNX 30
Pair trading matchups for HNX 30
Long Giang Investment
Pair trading matchups for Long Giang
Pair Trading with HNX 30 and Long Giang
The main advantage of trading using opposite HNX 30 and Long Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 position performs unexpectedly, Long Giang 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 Long Giang will offset losses from the drop in Long Giang's long position.| HNX 30 vs. Sao Vang Rubber | HNX 30 vs. Dong Nai Plastic | HNX 30 vs. Ben Thanh Rubber | HNX 30 vs. FPT Digital Retail |
| Long Giang vs. Fecon Mining JSC | Long Giang vs. Investment and Industrial | Long Giang vs. Post and Telecommunications | Long Giang vs. Ducgiang Chemicals Detergent |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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