Correlation Between Investment and Saigon Beer
Can any of the company-specific risk be diversified away by investing in both Investment and Saigon Beer 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 Investment and Saigon Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment And Construction and Saigon Beer Alcohol, you can compare the effects of market volatilities on Investment and Saigon Beer 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 Investment with a short position of Saigon Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Saigon Beer.
Diversification Opportunities for Investment and Saigon Beer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investment and Saigon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment And Construction and Saigon Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Beer Alcohol and 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 Investment And Construction are associated (or correlated) with Saigon Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Beer Alcohol has no effect on the direction of Investment i.e., Investment and Saigon Beer go up and down completely randomly.
Pair Corralation between Investment and Saigon Beer
Assuming the 90 days trading horizon Investment And Construction is expected to under-perform the Saigon Beer. In addition to that, Investment is 1.57 times more volatile than Saigon Beer Alcohol. It trades about -0.37 of its total potential returns per unit of risk. Saigon Beer Alcohol is currently generating about -0.08 per unit of volatility. If you would invest 5,530,350 in Saigon Beer Alcohol on October 17, 2024 and sell it today you would lose (80,350) from holding Saigon Beer Alcohol or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Investment And Construction vs. Saigon Beer Alcohol
Performance |
| Timeline |
| Investment And Const |
| Saigon Beer Alcohol |
Investment and Saigon Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Saigon Beer
The main advantage of trading using opposite Investment and Saigon Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment position performs unexpectedly, Saigon Beer 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 Saigon Beer will offset losses from the drop in Saigon Beer's long position.| Investment vs. Elcom Technology Communications | Investment vs. VietinBank Securities JSC | Investment vs. Military Insurance Corp | Investment vs. Vietnam Technological And |
| Saigon Beer vs. Transimex Transportation JSC | Saigon Beer vs. DOMESCO Medical Import | Saigon Beer vs. Materials Petroleum JSC | Saigon Beer vs. Southern Rubber Industry |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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