Correlation Between Telecoms Informatics and Vietnam Rubber
Can any of the company-specific risk be diversified away by investing in both Telecoms Informatics and Vietnam Rubber 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 Telecoms Informatics and Vietnam Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telecoms Informatics JSC and Vietnam Rubber Group, you can compare the effects of market volatilities on Telecoms Informatics and Vietnam Rubber 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 Telecoms Informatics with a short position of Vietnam Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecoms Informatics and Vietnam Rubber.
Diversification Opportunities for Telecoms Informatics and Vietnam Rubber
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Telecoms and Vietnam is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Telecoms Informatics JSC and Vietnam Rubber Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Rubber Group and Telecoms Informatics 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 Telecoms Informatics JSC are associated (or correlated) with Vietnam Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Rubber Group has no effect on the direction of Telecoms Informatics i.e., Telecoms Informatics and Vietnam Rubber go up and down completely randomly.
Pair Corralation between Telecoms Informatics and Vietnam Rubber
Assuming the 90 days trading horizon Telecoms Informatics JSC is expected to generate 0.86 times more return on investment than Vietnam Rubber. However, Telecoms Informatics JSC is 1.17 times less risky than Vietnam Rubber. It trades about -0.01 of its potential returns per unit of risk. Vietnam Rubber Group is currently generating about -0.39 per unit of risk. If you would invest 1,365,000 in Telecoms Informatics JSC on January 17, 2025 and sell it today you would lose (25,000) from holding Telecoms Informatics JSC or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telecoms Informatics JSC vs. Vietnam Rubber Group
Performance |
| Timeline |
| Telecoms Informatics JSC |
| Vietnam Rubber Group |
Telecoms Informatics and Vietnam Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecoms Informatics and Vietnam Rubber
The main advantage of trading using opposite Telecoms Informatics and Vietnam Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecoms Informatics position performs unexpectedly, Vietnam Rubber 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 Rubber will offset losses from the drop in Vietnam Rubber's long position.| Telecoms Informatics vs. Saigon Beer Alcohol | Telecoms Informatics vs. Saigon Telecommunication Technologies | Telecoms Informatics vs. Riverway Management JSC | Telecoms Informatics vs. Ba Ria Thermal |
| Vietnam Rubber vs. FIT INVEST JSC | Vietnam Rubber vs. Damsan JSC | Vietnam Rubber vs. An Phat Plastic | Vietnam Rubber 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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