Correlation Between Mechanics Construction and HNX 30
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By analyzing existing cross correlation between Mechanics Construction and and HNX 30, you can compare the effects of market volatilities on Mechanics Construction and HNX 30 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 Mechanics Construction with a short position of HNX 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mechanics Construction and HNX 30.
Diversification Opportunities for Mechanics Construction and HNX 30
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mechanics and HNX is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mechanics Construction and and HNX 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNX 30 and Mechanics 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 Mechanics Construction and are associated (or correlated) with HNX 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNX 30 has no effect on the direction of Mechanics Construction i.e., Mechanics Construction and HNX 30 go up and down completely randomly.
Pair Corralation between Mechanics Construction and HNX 30
Assuming the 90 days trading horizon Mechanics Construction and is expected to generate 0.38 times more return on investment than HNX 30. However, Mechanics Construction and is 2.67 times less risky than HNX 30. It trades about 0.3 of its potential returns per unit of risk. HNX 30 is currently generating about -0.23 per unit of risk. If you would invest 860,000 in Mechanics Construction and on October 22, 2024 and sell it today you would earn a total of 10,000 from holding Mechanics Construction and or generate 1.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 55.0% |
Values | Daily Returns |
Mechanics Construction and vs. HNX 30
Performance |
Timeline |
Mechanics Construction and HNX 30 Volatility Contrast
Predicted Return Density |
Returns |
Mechanics Construction and
Pair trading matchups for Mechanics Construction
HNX 30
Pair trading matchups for HNX 30
Pair Trading with Mechanics Construction and HNX 30
The main advantage of trading using opposite Mechanics Construction and HNX 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mechanics Construction position performs unexpectedly, HNX 30 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 HNX 30 will offset losses from the drop in HNX 30's long position.Mechanics Construction vs. Visicons Construction and | Mechanics Construction vs. Riverway Management JSC | Mechanics Construction vs. Vietnam Construction JSC | Mechanics Construction vs. CEO Group JSC |
HNX 30 vs. Mechanics Construction and | HNX 30 vs. Hochiminh City Metal | HNX 30 vs. Petrovietnam Drilling Mud | HNX 30 vs. Techno Agricultural Supplying |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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