Correlation Between Post and Vinacomin Power
Can any of the company-specific risk be diversified away by investing in both Post and Vinacomin Power 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 Post and Vinacomin Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Post and Telecommunications and Vinacomin Power Holding, you can compare the effects of market volatilities on Post and Vinacomin Power 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 Post with a short position of Vinacomin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Vinacomin Power.
Diversification Opportunities for Post and Vinacomin Power
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Post and Vinacomin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Vinacomin Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinacomin Power Holding and Post 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 Post and Telecommunications are associated (or correlated) with Vinacomin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinacomin Power Holding has no effect on the direction of Post i.e., Post and Vinacomin Power go up and down completely randomly.
Pair Corralation between Post and Vinacomin Power
Assuming the 90 days trading horizon Post and Telecommunications is expected to generate 0.85 times more return on investment than Vinacomin Power. However, Post and Telecommunications is 1.17 times less risky than Vinacomin Power. It trades about -0.03 of its potential returns per unit of risk. Vinacomin Power Holding is currently generating about -0.04 per unit of risk. If you would invest 503,000 in Post and Telecommunications on September 12, 2024 and sell it today you would lose (34,000) from holding Post and Telecommunications or give up 6.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Post and Telecommunications vs. Vinacomin Power Holding
Performance |
| Timeline |
| Post and Telecommuni |
| Vinacomin Power Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Post and Vinacomin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Vinacomin Power
The main advantage of trading using opposite Post and Vinacomin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Vinacomin Power 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 Vinacomin Power will offset losses from the drop in Vinacomin Power's long position.| Post vs. Development Investment Construction | Post vs. Saigon Telecommunication Technologies | Post vs. Educational Book In | Post vs. LDG Investment JSC |
| Vinacomin Power vs. Post and Telecommunications | Vinacomin Power vs. Elcom Technology Communications | Vinacomin Power vs. Petrolimex Information Technology | Vinacomin Power vs. Global Electrical Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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