Correlation Between Saigon Beer and Southern Rubber
Can any of the company-specific risk be diversified away by investing in both Saigon Beer and Southern Rubber 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 Saigon Beer and Southern Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Beer Alcohol and Southern Rubber Industry, you can compare the effects of market volatilities on Saigon Beer and Southern Rubber 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 Saigon Beer with a short position of Southern Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and Southern Rubber.
Diversification Opportunities for Saigon Beer and Southern Rubber
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saigon and Southern is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and Southern Rubber Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Rubber Industry and Saigon Beer 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 Saigon Beer Alcohol are associated (or correlated) with Southern Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Rubber Industry has no effect on the direction of Saigon Beer i.e., Saigon Beer and Southern Rubber go up and down completely randomly.
Pair Corralation between Saigon Beer and Southern Rubber
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to under-perform the Southern Rubber. But the stock apears to be less risky and, when comparing its historical volatility, Saigon Beer Alcohol is 1.39 times less risky than Southern Rubber. The stock trades about -0.05 of its potential returns per unit of risk. The Southern Rubber Industry is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,364,727 in Southern Rubber Industry on October 25, 2024 and sell it today you would earn a total of 100,273 from holding Southern Rubber Industry or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. Southern Rubber Industry
Performance |
| Timeline |
| Saigon Beer Alcohol |
| Southern Rubber Industry |
Saigon Beer and Southern Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and Southern Rubber
The main advantage of trading using opposite Saigon Beer and Southern Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer position performs unexpectedly, Southern Rubber 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 Southern Rubber will offset losses from the drop in Southern Rubber's long position.| Saigon Beer vs. FIT INVEST JSC | Saigon Beer vs. Damsan JSC | Saigon Beer vs. An Phat Plastic | Saigon Beer vs. APG Securities Joint |
| Southern Rubber vs. FIT INVEST JSC | Southern Rubber vs. Damsan JSC | Southern Rubber vs. An Phat Plastic | Southern Rubber vs. APG Securities Joint |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |