Correlation Between 577 Investment and Kien Giang
Can any of the company-specific risk be diversified away by investing in both 577 Investment and Kien Giang 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 577 Investment and Kien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 577 Investment Corp and Kien Giang Construction, you can compare the effects of market volatilities on 577 Investment and Kien Giang 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 577 Investment with a short position of Kien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of 577 Investment and Kien Giang.
Diversification Opportunities for 577 Investment and Kien Giang
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 577 and Kien is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding 577 Investment Corp and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction and 577 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 577 Investment Corp are associated (or correlated) with Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of 577 Investment i.e., 577 Investment and Kien Giang go up and down completely randomly.
Pair Corralation between 577 Investment and Kien Giang
Assuming the 90 days trading horizon 577 Investment Corp is expected to generate 1.28 times more return on investment than Kien Giang. However, 577 Investment is 1.28 times more volatile than Kien Giang Construction. It trades about 0.0 of its potential returns per unit of risk. Kien Giang Construction is currently generating about -0.24 per unit of risk. If you would invest 2,225,000 in 577 Investment Corp on November 1, 2024 and sell it today you would lose (30,000) from holding 577 Investment Corp or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
577 Investment Corp vs. Kien Giang Construction
Performance |
| Timeline |
| 577 Investment Corp |
| Kien Giang Construction |
577 Investment and Kien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 577 Investment and Kien Giang
The main advantage of trading using opposite 577 Investment and Kien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 577 Investment position performs unexpectedly, Kien Giang 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 Kien Giang will offset losses from the drop in Kien Giang's long position.| 577 Investment vs. Binhthuan Agriculture Services | 577 Investment vs. TDT Investment and | 577 Investment vs. Viettel Construction JSC | 577 Investment vs. Hung Hau Agricultural |
| Kien Giang vs. Danang Education Investment | Kien Giang vs. Petrolimex International Trading | Kien Giang vs. Everland Investment JSC | Kien Giang vs. Petrolimex Petrochemical 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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