Correlation Between Nam Kim and Vinhomes JSC
Can any of the company-specific risk be diversified away by investing in both Nam Kim and Vinhomes JSC 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 Nam Kim and Vinhomes JSC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nam Kim Steel and Vinhomes JSC, you can compare the effects of market volatilities on Nam Kim and Vinhomes JSC 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 Nam Kim with a short position of Vinhomes JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nam Kim and Vinhomes JSC.
Diversification Opportunities for Nam Kim and Vinhomes JSC
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nam and Vinhomes is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nam Kim Steel and Vinhomes JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinhomes JSC and Nam Kim 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 Nam Kim Steel are associated (or correlated) with Vinhomes JSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinhomes JSC has no effect on the direction of Nam Kim i.e., Nam Kim and Vinhomes JSC go up and down completely randomly.
Pair Corralation between Nam Kim and Vinhomes JSC
Assuming the 90 days trading horizon Nam Kim Steel is expected to under-perform the Vinhomes JSC. In addition to that, Nam Kim is 1.21 times more volatile than Vinhomes JSC. It trades about -0.03 of its total potential returns per unit of risk. Vinhomes JSC is currently generating about 0.01 per unit of volatility. If you would invest 3,970,000 in Vinhomes JSC on September 2, 2024 and sell it today you would earn a total of 110,000 from holding Vinhomes JSC or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nam Kim Steel vs. Vinhomes JSC
Performance |
| Timeline |
| Nam Kim Steel |
| Vinhomes JSC |
Nam Kim and Vinhomes JSC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nam Kim and Vinhomes JSC
The main advantage of trading using opposite Nam Kim and Vinhomes JSC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nam Kim position performs unexpectedly, Vinhomes JSC 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 Vinhomes JSC will offset losses from the drop in Vinhomes JSC's long position.| Nam Kim vs. Ha Noi Education | Nam Kim vs. Tien Giang Investment | Nam Kim vs. Post and Telecommunications | Nam Kim vs. Vien Dong Investment |
| Vinhomes JSC vs. FIT INVEST JSC | Vinhomes JSC vs. Damsan JSC | Vinhomes JSC vs. An Phat Plastic | Vinhomes JSC vs. Alphanam ME |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |