Correlation Between Saigon Beer and Investment
Can any of the company-specific risk be diversified away by investing in both Saigon Beer and 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 Saigon Beer and Investment 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 Investment And Construction, you can compare the effects of market volatilities on Saigon Beer and 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 Saigon Beer with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and Investment.
Diversification Opportunities for Saigon Beer and Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saigon and Investment is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of Saigon Beer i.e., Saigon Beer and Investment go up and down completely randomly.
Pair Corralation between Saigon Beer and Investment
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to under-perform the Investment. But the stock apears to be less risky and, when comparing its historical volatility, Saigon Beer Alcohol is 3.67 times less risky than Investment. The stock trades about -0.05 of its potential returns per unit of risk. The Investment And Construction is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 390,000 in Investment And Construction on October 17, 2024 and sell it today you would earn a total of 580,000 from holding Investment And Construction or generate 148.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.95% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. Investment And Construction
Performance |
| Timeline |
| Saigon Beer Alcohol |
| Investment And Const |
Saigon Beer and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and Investment
The main advantage of trading using opposite Saigon Beer and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer position performs unexpectedly, 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 Investment will offset losses from the drop in Investment's long position.| Saigon Beer vs. Transimex Transportation JSC | Saigon Beer vs. DOMESCO Medical Import | Saigon Beer vs. Materials Petroleum JSC | Saigon Beer vs. Southern Rubber Industry |
| Investment vs. Elcom Technology Communications | Investment vs. VietinBank Securities JSC | Investment vs. Military Insurance Corp | Investment vs. Vietnam Technological And |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |