Correlation Between Nam Long and Vina2 Investment
Can any of the company-specific risk be diversified away by investing in both Nam Long and Vina2 Investment 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 Long and Vina2 Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nam Long Investment and Vina2 Investment and, you can compare the effects of market volatilities on Nam Long and Vina2 Investment 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 Long with a short position of Vina2 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nam Long and Vina2 Investment.
Diversification Opportunities for Nam Long and Vina2 Investment
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nam and Vina2 is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Nam Long Investment and Vina2 Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina2 Investment and Nam Long 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 Long Investment are associated (or correlated) with Vina2 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina2 Investment has no effect on the direction of Nam Long i.e., Nam Long and Vina2 Investment go up and down completely randomly.
Pair Corralation between Nam Long and Vina2 Investment
Assuming the 90 days trading horizon Nam Long Investment is expected to under-perform the Vina2 Investment. But the stock apears to be less risky and, when comparing its historical volatility, Nam Long Investment is 1.39 times less risky than Vina2 Investment. The stock trades about 0.0 of its potential returns per unit of risk. The Vina2 Investment and is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 820,000 in Vina2 Investment and on January 10, 2025 and sell it today you would lose (110,000) from holding Vina2 Investment and or give up 13.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nam Long Investment vs. Vina2 Investment and
Performance |
| Timeline |
| Nam Long Investment |
| Vina2 Investment |
Nam Long and Vina2 Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nam Long and Vina2 Investment
The main advantage of trading using opposite Nam Long and Vina2 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nam Long position performs unexpectedly, Vina2 Investment 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 Vina2 Investment will offset losses from the drop in Vina2 Investment's long position.| Nam Long vs. Petrolimex Insurance Corp | Nam Long vs. Saigon Telecommunication Technologies | Nam Long vs. BaoMinh Insurance Corp | Nam Long vs. Military Insurance Corp |
| Vina2 Investment vs. Transport and Industry | Vina2 Investment vs. TDG Global Investment | Vina2 Investment vs. VTC Telecommunications JSC | Vina2 Investment 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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