Correlation Between Telecoms Informatics and VN Index
Can any of the company-specific risk be diversified away by investing in both Telecoms Informatics and VN Index 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 VN Index 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 VN Index, you can compare the effects of market volatilities on Telecoms Informatics 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 Telecoms Informatics with a short position of VN Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecoms Informatics and VN Index.
Diversification Opportunities for Telecoms Informatics and VN Index
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Telecoms and VNI is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Telecoms Informatics JSC and VN Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VN Index 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 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 Telecoms Informatics i.e., Telecoms Informatics and VN Index go up and down completely randomly.
Pair Corralation between Telecoms Informatics and VN Index
Assuming the 90 days trading horizon Telecoms Informatics JSC is expected to generate 3.62 times more return on investment than VN Index. However, Telecoms Informatics is 3.62 times more volatile than VN Index. It trades about 0.13 of its potential returns per unit of risk. VN Index is currently generating about 0.08 per unit of risk. If you would invest 1,385,000 in Telecoms Informatics JSC on November 4, 2024 and sell it today you would earn a total of 65,000 from holding Telecoms Informatics JSC or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telecoms Informatics JSC vs. VN Index
Performance |
| Timeline |
Telecoms Informatics and VN Index Volatility Contrast
Predicted Return Density |
| Returns |
Telecoms Informatics JSC
Pair trading matchups for Telecoms Informatics
VN Index
Pair trading matchups for VN Index
Pair Trading with Telecoms Informatics and VN Index
The main advantage of trading using opposite Telecoms Informatics and VN Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecoms Informatics 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.| Telecoms Informatics vs. Vietnam Petroleum Transport | Telecoms Informatics vs. Military Insurance Corp | Telecoms Informatics vs. Hai An Transport | Telecoms Informatics vs. Transport and Industry |
| VN Index vs. Nam Kim Steel | VN Index vs. MST Investment JSC | VN Index vs. PV2 Investment JSC | VN Index vs. HVC Investment and |
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 CEOs Directory module to screen CEOs from public companies around the world.
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