Correlation Between Innovative Technology and Viet Thanh
Can any of the company-specific risk be diversified away by investing in both Innovative Technology and Viet Thanh 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 Innovative Technology and Viet Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovative Technology Development and Viet Thanh Plastic, you can compare the effects of market volatilities on Innovative Technology and Viet Thanh 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 Innovative Technology with a short position of Viet Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Technology and Viet Thanh.
Diversification Opportunities for Innovative Technology and Viet Thanh
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Innovative and Viet is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Technology Developm and Viet Thanh Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viet Thanh Plastic and Innovative Technology 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 Innovative Technology Development are associated (or correlated) with Viet Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viet Thanh Plastic has no effect on the direction of Innovative Technology i.e., Innovative Technology and Viet Thanh go up and down completely randomly.
Pair Corralation between Innovative Technology and Viet Thanh
Assuming the 90 days trading horizon Innovative Technology is expected to generate 1.61 times less return on investment than Viet Thanh. In addition to that, Innovative Technology is 4.48 times more volatile than Viet Thanh Plastic. It trades about 0.07 of its total potential returns per unit of risk. Viet Thanh Plastic is currently generating about 0.49 per unit of volatility. If you would invest 1,680,000 in Viet Thanh Plastic on November 8, 2024 and sell it today you would earn a total of 90,000 from holding Viet Thanh Plastic or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Innovative Technology Developm vs. Viet Thanh Plastic
Performance |
| Timeline |
| Innovative Technology |
| Viet Thanh Plastic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Innovative Technology and Viet Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Technology and Viet Thanh
The main advantage of trading using opposite Innovative Technology and Viet Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Technology position performs unexpectedly, Viet Thanh 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 Viet Thanh will offset losses from the drop in Viet Thanh's long position.| Innovative Technology vs. VietinBank Securities JSC | Innovative Technology vs. Cotec Construction JSC | Innovative Technology vs. Taseco Air Services | Innovative Technology vs. Binh Duong Construction |
| Viet Thanh vs. Phuoc Hoa Rubber | Viet Thanh vs. HVC Investment and | Viet Thanh vs. Pha Le Plastics | Viet Thanh vs. An Phat Plastic |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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