Correlation Between Nafoods Group and Vu Dang
Can any of the company-specific risk be diversified away by investing in both Nafoods Group and Vu Dang 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 Nafoods Group and Vu Dang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nafoods Group JSC and Vu Dang Investment, you can compare the effects of market volatilities on Nafoods Group and Vu Dang 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 Nafoods Group with a short position of Vu Dang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nafoods Group and Vu Dang.
Diversification Opportunities for Nafoods Group and Vu Dang
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nafoods and SVD is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nafoods Group JSC and Vu Dang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vu Dang Investment and Nafoods Group 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 Nafoods Group JSC are associated (or correlated) with Vu Dang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vu Dang Investment has no effect on the direction of Nafoods Group i.e., Nafoods Group and Vu Dang go up and down completely randomly.
Pair Corralation between Nafoods Group and Vu Dang
Assuming the 90 days trading horizon Nafoods Group JSC is expected to generate 2.26 times more return on investment than Vu Dang. However, Nafoods Group is 2.26 times more volatile than Vu Dang Investment. It trades about 0.0 of its potential returns per unit of risk. Vu Dang Investment is currently generating about -0.02 per unit of risk. If you would invest 1,970,000 in Nafoods Group JSC on January 15, 2025 and sell it today you would lose (25,000) from holding Nafoods Group JSC or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nafoods Group JSC vs. Vu Dang Investment
Performance |
| Timeline |
| Nafoods Group JSC |
| Vu Dang Investment |
Nafoods Group and Vu Dang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nafoods Group and Vu Dang
The main advantage of trading using opposite Nafoods Group and Vu Dang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nafoods Group position performs unexpectedly, Vu Dang 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 Vu Dang will offset losses from the drop in Vu Dang's long position.| Nafoods Group vs. SMC Investment Trading | Nafoods Group vs. LDG Investment JSC | Nafoods Group vs. Sao Ta Foods | Nafoods Group vs. TDG Global Investment |
| Vu Dang vs. TDG Global Investment | Vu Dang vs. Vien Dong Investment | Vu Dang vs. Thu Duc TradingImport | Vu Dang vs. Din Capital 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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