Correlation Between Song Hong and Development Investment
Can any of the company-specific risk be diversified away by investing in both Song Hong and Development Investment 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 Song Hong and Development Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Song Hong Garment and Development Investment Construction, you can compare the effects of market volatilities on Song Hong and Development Investment 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 Song Hong with a short position of Development Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Song Hong and Development Investment.
Diversification Opportunities for Song Hong and Development Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Song and Development is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Song Hong Garment and Development Investment Constru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Development Investment and Song Hong 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 Song Hong Garment are associated (or correlated) with Development Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Development Investment has no effect on the direction of Song Hong i.e., Song Hong and Development Investment go up and down completely randomly.
Pair Corralation between Song Hong and Development Investment
If you would invest 504,760 in Development Investment Construction on September 3, 2024 and sell it today you would earn a total of 205,240 from holding Development Investment Construction or generate 40.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.24% |
| Values | Daily Returns |
Song Hong Garment vs. Development Investment Constru
Performance |
| Timeline |
| Song Hong Garment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Development Investment |
Song Hong and Development Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Song Hong and Development Investment
The main advantage of trading using opposite Song Hong and Development Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Song Hong position performs unexpectedly, Development Investment 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 Development Investment will offset losses from the drop in Development Investment's long position.| Song Hong vs. Vina2 Investment and | Song Hong vs. An Phat Plastic | Song Hong vs. Hanoi Plastics JSC | Song Hong vs. Nafoods Group 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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