Correlation Between 577 Investment and Khang Minh
Can any of the company-specific risk be diversified away by investing in both 577 Investment and Khang Minh 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 Khang Minh 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 Khang Minh Brick, you can compare the effects of market volatilities on 577 Investment and Khang Minh 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 Khang Minh. Check out your portfolio center. Please also check ongoing floating volatility patterns of 577 Investment and Khang Minh.
Diversification Opportunities for 577 Investment and Khang Minh
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 577 and Khang is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding 577 Investment Corp and Khang Minh Brick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khang Minh Brick 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 Khang Minh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khang Minh Brick has no effect on the direction of 577 Investment i.e., 577 Investment and Khang Minh go up and down completely randomly.
Pair Corralation between 577 Investment and Khang Minh
Assuming the 90 days trading horizon 577 Investment Corp is expected to under-perform the Khang Minh. But the stock apears to be less risky and, when comparing its historical volatility, 577 Investment Corp is 4.24 times less risky than Khang Minh. The stock trades about -0.19 of its potential returns per unit of risk. The Khang Minh Brick is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 580,000 in Khang Minh Brick on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Khang Minh Brick or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
577 Investment Corp vs. Khang Minh Brick
Performance |
| Timeline |
| 577 Investment Corp |
| Khang Minh Brick |
577 Investment and Khang Minh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 577 Investment and Khang Minh
The main advantage of trading using opposite 577 Investment and Khang Minh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 577 Investment position performs unexpectedly, Khang Minh 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 Khang Minh will offset losses from the drop in Khang Minh's long position.| 577 Investment vs. Tri Viet Management | 577 Investment vs. Bao Ngoc Investment | 577 Investment vs. Ha Noi Education | 577 Investment vs. MST Investment JSC |
| Khang Minh vs. Military Insurance Corp | Khang Minh vs. Viettel Construction JSC | Khang Minh vs. DOMESCO Medical Import | Khang Minh vs. 1369 Construction 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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