Correlation Between Hoasen and Vietnam JSCmmercial
Can any of the company-specific risk be diversified away by investing in both Hoasen and Vietnam JSCmmercial 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 Hoasen and Vietnam JSCmmercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoasen Group and Vietnam JSCmmercial Bank, you can compare the effects of market volatilities on Hoasen and Vietnam JSCmmercial 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 Hoasen with a short position of Vietnam JSCmmercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoasen and Vietnam JSCmmercial.
Diversification Opportunities for Hoasen and Vietnam JSCmmercial
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoasen and Vietnam is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hoasen Group and Vietnam JSCmmercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam JSCmmercial Bank and Hoasen 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 Hoasen Group are associated (or correlated) with Vietnam JSCmmercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam JSCmmercial Bank has no effect on the direction of Hoasen i.e., Hoasen and Vietnam JSCmmercial go up and down completely randomly.
Pair Corralation between Hoasen and Vietnam JSCmmercial
Assuming the 90 days trading horizon Hoasen Group is expected to generate 1.41 times more return on investment than Vietnam JSCmmercial. However, Hoasen is 1.41 times more volatile than Vietnam JSCmmercial Bank. It trades about 0.05 of its potential returns per unit of risk. Vietnam JSCmmercial Bank is currently generating about 0.05 per unit of risk. If you would invest 1,201,394 in Hoasen Group on September 3, 2024 and sell it today you would earn a total of 688,606 from holding Hoasen Group or generate 57.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoasen Group vs. Vietnam JSCmmercial Bank
Performance |
| Timeline |
| Hoasen Group |
| Vietnam JSCmmercial Bank |
Hoasen and Vietnam JSCmmercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoasen and Vietnam JSCmmercial
The main advantage of trading using opposite Hoasen and Vietnam JSCmmercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoasen position performs unexpectedly, Vietnam JSCmmercial 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 Vietnam JSCmmercial will offset losses from the drop in Vietnam JSCmmercial's long position.| Hoasen vs. Vietnam JSCmmercial Bank | Hoasen vs. Saigon Beer Alcohol | Hoasen vs. Century Synthetic Fiber | Hoasen vs. Saigon Viendong Technology |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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