Correlation Between Saigon Beer and Saigon Thuong
Can any of the company-specific risk be diversified away by investing in both Saigon Beer and Saigon Thuong 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 Saigon Thuong 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 Saigon Thuong Tin, you can compare the effects of market volatilities on Saigon Beer and Saigon Thuong 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 Saigon Thuong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and Saigon Thuong.
Diversification Opportunities for Saigon Beer and Saigon Thuong
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Saigon and Saigon is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and Saigon Thuong Tin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Thuong Tin 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 Saigon Thuong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Thuong Tin has no effect on the direction of Saigon Beer i.e., Saigon Beer and Saigon Thuong go up and down completely randomly.
Pair Corralation between Saigon Beer and Saigon Thuong
Assuming the 90 days trading horizon Saigon Beer is expected to generate 2.19 times less return on investment than Saigon Thuong. But when comparing it to its historical volatility, Saigon Beer Alcohol is 1.97 times less risky than Saigon Thuong. It trades about 0.07 of its potential returns per unit of risk. Saigon Thuong Tin is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 541,000 in Saigon Thuong Tin on September 12, 2024 and sell it today you would earn a total of 46,000 from holding Saigon Thuong Tin or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. Saigon Thuong Tin
Performance |
| Timeline |
| Saigon Beer Alcohol |
| Saigon Thuong Tin |
Saigon Beer and Saigon Thuong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and Saigon Thuong
The main advantage of trading using opposite Saigon Beer and Saigon Thuong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer position performs unexpectedly, Saigon Thuong 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 Saigon Thuong will offset losses from the drop in Saigon Thuong's long position.| Saigon Beer vs. FIT INVEST JSC | Saigon Beer vs. Damsan JSC | Saigon Beer vs. An Phat Plastic | Saigon Beer vs. Alphanam ME |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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