Correlation Between Construction and Hochiminh City
Can any of the company-specific risk be diversified away by investing in both Construction and Hochiminh City 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 Construction and Hochiminh City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Construction And Investment and Hochiminh City Metal, you can compare the effects of market volatilities on Construction and Hochiminh City 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 Construction with a short position of Hochiminh City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Construction and Hochiminh City.
Diversification Opportunities for Construction and Hochiminh City
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Construction and Hochiminh is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Construction And Investment and Hochiminh City Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hochiminh City Metal and Construction 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 Construction And Investment are associated (or correlated) with Hochiminh City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hochiminh City Metal has no effect on the direction of Construction i.e., Construction and Hochiminh City go up and down completely randomly.
Pair Corralation between Construction and Hochiminh City
Assuming the 90 days trading horizon Construction And Investment is expected to generate 2.39 times more return on investment than Hochiminh City. However, Construction is 2.39 times more volatile than Hochiminh City Metal. It trades about 0.22 of its potential returns per unit of risk. Hochiminh City Metal is currently generating about -0.1 per unit of risk. If you would invest 3,610,000 in Construction And Investment on August 25, 2024 and sell it today you would earn a total of 330,000 from holding Construction And Investment or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Construction And Investment vs. Hochiminh City Metal
Performance |
| Timeline |
| Construction And Inv |
| Hochiminh City Metal |
Construction and Hochiminh City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Construction and Hochiminh City
The main advantage of trading using opposite Construction and Hochiminh City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Construction position performs unexpectedly, Hochiminh City 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 Hochiminh City will offset losses from the drop in Hochiminh City's long position.| Construction vs. Hochiminh City Metal | Construction vs. Ha Long Investment | Construction vs. Tin Nghia Industrial | Construction vs. HUD1 Investment and |
| Hochiminh City vs. FIT INVEST JSC | Hochiminh City vs. Damsan JSC | Hochiminh City vs. An Phat Plastic | Hochiminh City vs. APG Securities Joint |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |