Correlation Between Post and Vu Dang
Can any of the company-specific risk be diversified away by investing in both Post and Vu Dang 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 Vu Dang 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 Vu Dang Investment, you can compare the effects of market volatilities on Post and Vu Dang 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 Vu Dang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Vu Dang.
Diversification Opportunities for Post and Vu Dang
Modest diversification
The 3 months correlation between Post and SVD is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Vu Dang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vu Dang Investment 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 Vu Dang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vu Dang Investment has no effect on the direction of Post i.e., Post and Vu Dang go up and down completely randomly.
Pair Corralation between Post and Vu Dang
Assuming the 90 days trading horizon Post and Telecommunications is expected to generate 0.96 times more return on investment than Vu Dang. However, Post and Telecommunications is 1.05 times less risky than Vu Dang. It trades about 0.21 of its potential returns per unit of risk. Vu Dang Investment is currently generating about -0.04 per unit of risk. If you would invest 420,000 in Post and Telecommunications on November 8, 2024 and sell it today you would earn a total of 39,000 from holding Post and Telecommunications or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Post and Telecommunications vs. Vu Dang Investment
Performance |
| Timeline |
| Post and Telecommuni |
| Vu Dang Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Post and Vu Dang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Vu Dang
The main advantage of trading using opposite Post and Vu Dang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Vu Dang 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 Vu Dang will offset losses from the drop in Vu Dang's long position.| Post vs. Nafoods Group JSC | Post vs. South Basic Chemicals | Post vs. Hochiminh City Metal | Post vs. Agriculture Printing and |
| Vu Dang vs. Vinhomes JSC | Vu Dang vs. SMC Investment Trading | Vu Dang vs. Everland Investment JSC | Vu Dang vs. Ducgiang Chemicals Detergent |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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