Correlation Between LDG Investment and Hochiminh City
Can any of the company-specific risk be diversified away by investing in both LDG Investment 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 LDG Investment and Hochiminh City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LDG Investment JSC and Hochiminh City Metal, you can compare the effects of market volatilities on LDG Investment 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 LDG Investment with a short position of Hochiminh City. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDG Investment and Hochiminh City.
Diversification Opportunities for LDG Investment and Hochiminh City
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between LDG and Hochiminh is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding LDG Investment JSC 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 LDG Investment 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 LDG Investment JSC 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 LDG Investment i.e., LDG Investment and Hochiminh City go up and down completely randomly.
Pair Corralation between LDG Investment and Hochiminh City
Assuming the 90 days trading horizon LDG Investment JSC is expected to under-perform the Hochiminh City. In addition to that, LDG Investment is 2.29 times more volatile than Hochiminh City Metal. It trades about -0.06 of its total potential returns per unit of risk. Hochiminh City Metal is currently generating about -0.1 per unit of volatility. If you would invest 1,100,000 in Hochiminh City Metal on August 25, 2024 and sell it today you would lose (20,000) from holding Hochiminh City Metal or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LDG Investment JSC vs. Hochiminh City Metal
Performance |
| Timeline |
| LDG Investment JSC |
| Hochiminh City Metal |
LDG Investment and Hochiminh City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LDG Investment and Hochiminh City
The main advantage of trading using opposite LDG Investment and Hochiminh City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDG Investment 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.| LDG Investment vs. FIT INVEST JSC | LDG Investment vs. Damsan JSC | LDG Investment vs. An Phat Plastic | LDG Investment vs. APG Securities Joint |
| 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 Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |