Correlation Between Japan Vietnam and COMA 18
Can any of the company-specific risk be diversified away by investing in both Japan Vietnam and COMA 18 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 Japan Vietnam and COMA 18 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Vietnam Medical and COMA 18 JSC, you can compare the effects of market volatilities on Japan Vietnam and COMA 18 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 Japan Vietnam with a short position of COMA 18. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Vietnam and COMA 18.
Diversification Opportunities for Japan Vietnam and COMA 18
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Japan and COMA is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Japan Vietnam Medical and COMA 18 JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMA 18 JSC and Japan Vietnam 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 Japan Vietnam Medical are associated (or correlated) with COMA 18. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMA 18 JSC has no effect on the direction of Japan Vietnam i.e., Japan Vietnam and COMA 18 go up and down completely randomly.
Pair Corralation between Japan Vietnam and COMA 18
Assuming the 90 days trading horizon Japan Vietnam Medical is expected to generate 0.52 times more return on investment than COMA 18. However, Japan Vietnam Medical is 1.94 times less risky than COMA 18. It trades about 0.13 of its potential returns per unit of risk. COMA 18 JSC is currently generating about 0.05 per unit of risk. If you would invest 372,000 in Japan Vietnam Medical on October 24, 2024 and sell it today you would earn a total of 18,000 from holding Japan Vietnam Medical or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Vietnam Medical vs. COMA 18 JSC
Performance |
| Timeline |
| Japan Vietnam Medical |
| COMA 18 JSC |
Japan Vietnam and COMA 18 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Vietnam and COMA 18
The main advantage of trading using opposite Japan Vietnam and COMA 18 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Vietnam position performs unexpectedly, COMA 18 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 COMA 18 will offset losses from the drop in COMA 18's long position.The idea behind Japan Vietnam Medical and COMA 18 JSC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| COMA 18 vs. South Basic Chemicals | COMA 18 vs. FPT Corp | COMA 18 vs. BIDV Insurance Corp | COMA 18 vs. Japan Vietnam Medical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| 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 |