Correlation Between HNX 30 and VN Index
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By analyzing existing cross correlation between HNX 30 and VN Index, you can compare the effects of market volatilities on HNX 30 and VN Index 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 VN Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and VN Index.
Diversification Opportunities for HNX 30 and VN Index
Very poor diversification
The 3 months correlation between HNX and VNI is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and VN Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VN Index 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 VN Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VN Index has no effect on the direction of HNX 30 i.e., HNX 30 and VN Index go up and down completely randomly.
Pair Corralation between HNX 30 and VN Index
Assuming the 90 days trading horizon HNX 30 is expected to generate 4.67 times less return on investment than VN Index. In addition to that, HNX 30 is 1.46 times more volatile than VN Index. It trades about 0.01 of its total potential returns per unit of risk. VN Index is currently generating about 0.08 per unit of volatility. If you would invest 124,604 in VN Index on September 14, 2024 and sell it today you would earn a total of 1,718 from holding VN Index or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
HNX 30 vs. VN Index
Performance |
| Timeline |
HNX 30 and VN Index Volatility Contrast
Predicted Return Density |
| Returns |
HNX 30
Pair trading matchups for HNX 30
VN Index
Pair trading matchups for VN Index
Pair Trading with HNX 30 and VN Index
The main advantage of trading using opposite HNX 30 and VN Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 position performs unexpectedly, VN Index 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 VN Index will offset losses from the drop in VN Index's long position.| HNX 30 vs. Book And Educational | HNX 30 vs. Transport and Industry | HNX 30 vs. Hai An Transport | HNX 30 vs. Tri Viet Management |
| VN Index vs. DOMESCO Medical Import | VN Index vs. Hai An Transport | VN Index vs. AgriBank Securities JSC | VN Index vs. Asia Commercial Bank |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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