Correlation Between Japan Vietnam and Post
Can any of the company-specific risk be diversified away by investing in both Japan Vietnam and Post 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 Post 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 Post and Telecommunications, you can compare the effects of market volatilities on Japan Vietnam and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Vietnam and Post.
Diversification Opportunities for Japan Vietnam and Post
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Japan and Post is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Japan Vietnam Medical and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Japan Vietnam i.e., Japan Vietnam and Post go up and down completely randomly.
Pair Corralation between Japan Vietnam and Post
Assuming the 90 days trading horizon Japan Vietnam Medical is expected to generate 1.1 times more return on investment than Post. However, Japan Vietnam is 1.1 times more volatile than Post and Telecommunications. It trades about 0.32 of its potential returns per unit of risk. Post and Telecommunications is currently generating about 0.0 per unit of risk. If you would invest 303,000 in Japan Vietnam Medical on September 19, 2024 and sell it today you would earn a total of 48,000 from holding Japan Vietnam Medical or generate 15.84% 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. Post and Telecommunications
Performance |
| Timeline |
| Japan Vietnam Medical |
| Post and Telecommuni |
Japan Vietnam and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Vietnam and Post
The main advantage of trading using opposite Japan Vietnam and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Vietnam position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Japan Vietnam vs. Elcom Technology Communications | Japan Vietnam vs. Vietnam Petroleum Transport | Japan Vietnam vs. Saigon Viendong Technology | Japan Vietnam vs. Hai An Transport |
| Post vs. Vietnam Petroleum Transport | Post vs. VTC Telecommunications JSC | Post vs. Investment and Industrial | Post vs. Vietnam Airlines JSC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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