Correlation Between Vietnam Airlines and CEO Group
Can any of the company-specific risk be diversified away by investing in both Vietnam Airlines and CEO Group 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 Vietnam Airlines and CEO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam Airlines JSC and CEO Group JSC, you can compare the effects of market volatilities on Vietnam Airlines and CEO Group 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 Vietnam Airlines with a short position of CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Airlines and CEO Group.
Diversification Opportunities for Vietnam Airlines and CEO Group
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vietnam and CEO is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Airlines JSC and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group JSC and Vietnam Airlines 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 Vietnam Airlines JSC are associated (or correlated) with CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of Vietnam Airlines i.e., Vietnam Airlines and CEO Group go up and down completely randomly.
Pair Corralation between Vietnam Airlines and CEO Group
Assuming the 90 days trading horizon Vietnam Airlines JSC is expected to generate 1.96 times more return on investment than CEO Group. However, Vietnam Airlines is 1.96 times more volatile than CEO Group JSC. It trades about 0.46 of its potential returns per unit of risk. CEO Group JSC is currently generating about -0.16 per unit of risk. If you would invest 2,060,000 in Vietnam Airlines JSC on August 28, 2024 and sell it today you would earn a total of 750,000 from holding Vietnam Airlines JSC or generate 36.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam Airlines JSC vs. CEO Group JSC
Performance |
| Timeline |
| Vietnam Airlines JSC |
| CEO Group JSC |
Vietnam Airlines and CEO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Airlines and CEO Group
The main advantage of trading using opposite Vietnam Airlines and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Airlines position performs unexpectedly, CEO Group 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 CEO Group will offset losses from the drop in CEO Group's long position.| Vietnam Airlines vs. Nafoods Group JSC | Vietnam Airlines vs. Vietnam Technological And | Vietnam Airlines vs. Vietnam Dairy Products | Vietnam Airlines vs. Transport and Industry |
| CEO Group vs. FIT INVEST JSC | CEO Group vs. Damsan JSC | CEO Group vs. An Phat Plastic | CEO Group 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |