Correlation Between MST Investment and Vietnam Dairy
Can any of the company-specific risk be diversified away by investing in both MST Investment and Vietnam Dairy 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 MST Investment and Vietnam Dairy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MST Investment JSC and Vietnam Dairy Products, you can compare the effects of market volatilities on MST Investment and Vietnam Dairy 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 MST Investment with a short position of Vietnam Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of MST Investment and Vietnam Dairy.
Diversification Opportunities for MST Investment and Vietnam Dairy
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MST and Vietnam is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding MST Investment JSC and Vietnam Dairy Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Dairy Products and MST 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 MST Investment JSC are associated (or correlated) with Vietnam Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Dairy Products has no effect on the direction of MST Investment i.e., MST Investment and Vietnam Dairy go up and down completely randomly.
Pair Corralation between MST Investment and Vietnam Dairy
Assuming the 90 days trading horizon MST Investment JSC is expected to generate 4.51 times more return on investment than Vietnam Dairy. However, MST Investment is 4.51 times more volatile than Vietnam Dairy Products. It trades about 0.16 of its potential returns per unit of risk. Vietnam Dairy Products is currently generating about -0.33 per unit of risk. If you would invest 560,000 in MST Investment JSC on August 28, 2024 and sell it today you would earn a total of 50,000 from holding MST Investment JSC or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MST Investment JSC vs. Vietnam Dairy Products
Performance |
| Timeline |
| MST Investment JSC |
| Vietnam Dairy Products |
MST Investment and Vietnam Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MST Investment and Vietnam Dairy
The main advantage of trading using opposite MST Investment and Vietnam Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MST Investment position performs unexpectedly, Vietnam Dairy 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 Vietnam Dairy will offset losses from the drop in Vietnam Dairy's long position.| MST Investment vs. Riverway Management JSC | MST Investment vs. Tri Viet Management | MST Investment vs. Hanoi Plastics JSC | MST Investment vs. VTC Telecommunications JSC |
| Vietnam Dairy vs. Ha Long Investment | Vietnam Dairy vs. Development Investment Construction | Vietnam Dairy vs. MST Investment JSC | Vietnam Dairy vs. Tien Giang Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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