Correlation Between Vietnam Airlines and Agriculture Printing
Can any of the company-specific risk be diversified away by investing in both Vietnam Airlines and Agriculture Printing 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 Agriculture Printing 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 Agriculture Printing and, you can compare the effects of market volatilities on Vietnam Airlines and Agriculture Printing 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 Agriculture Printing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Airlines and Agriculture Printing.
Diversification Opportunities for Vietnam Airlines and Agriculture Printing
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vietnam and Agriculture is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Airlines JSC and Agriculture Printing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agriculture Printing and 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 Agriculture Printing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agriculture Printing and has no effect on the direction of Vietnam Airlines i.e., Vietnam Airlines and Agriculture Printing go up and down completely randomly.
Pair Corralation between Vietnam Airlines and Agriculture Printing
Assuming the 90 days trading horizon Vietnam Airlines JSC is expected to generate 1.62 times more return on investment than Agriculture Printing. However, Vietnam Airlines is 1.62 times more volatile than Agriculture Printing and. It trades about 0.29 of its potential returns per unit of risk. Agriculture Printing and is currently generating about 0.03 per unit of risk. If you would invest 2,050,000 in Vietnam Airlines JSC on September 3, 2024 and sell it today you would earn a total of 740,000 from holding Vietnam Airlines JSC or generate 36.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.7% |
| Values | Daily Returns |
Vietnam Airlines JSC vs. Agriculture Printing and
Performance |
| Timeline |
| Vietnam Airlines JSC |
| Agriculture Printing and |
Vietnam Airlines and Agriculture Printing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Airlines and Agriculture Printing
The main advantage of trading using opposite Vietnam Airlines and Agriculture Printing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Airlines position performs unexpectedly, Agriculture Printing 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 Agriculture Printing will offset losses from the drop in Agriculture Printing's long position.| Vietnam Airlines vs. MST Investment JSC | Vietnam Airlines vs. Petrolimex Information Technology | Vietnam Airlines vs. PV2 Investment JSC | Vietnam Airlines vs. Vincom Retail JSC |
| Agriculture Printing vs. FIT INVEST JSC | Agriculture Printing vs. Damsan JSC | Agriculture Printing vs. An Phat Plastic | Agriculture Printing 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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