Correlation Between Saigon Beer and Transimex Transportation
Can any of the company-specific risk be diversified away by investing in both Saigon Beer and Transimex Transportation 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 Transimex Transportation 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 Transimex Transportation JSC, you can compare the effects of market volatilities on Saigon Beer and Transimex Transportation 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 Transimex Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and Transimex Transportation.
Diversification Opportunities for Saigon Beer and Transimex Transportation
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saigon and Transimex is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and Transimex Transportation JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transimex Transportation 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 Transimex Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transimex Transportation has no effect on the direction of Saigon Beer i.e., Saigon Beer and Transimex Transportation go up and down completely randomly.
Pair Corralation between Saigon Beer and Transimex Transportation
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to generate 0.59 times more return on investment than Transimex Transportation. However, Saigon Beer Alcohol is 1.69 times less risky than Transimex Transportation. It trades about -0.08 of its potential returns per unit of risk. Transimex Transportation JSC is currently generating about -0.07 per unit of risk. If you would invest 5,530,350 in Saigon Beer Alcohol on October 17, 2024 and sell it today you would lose (80,350) from holding Saigon Beer Alcohol or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. Transimex Transportation JSC
Performance |
| Timeline |
| Saigon Beer Alcohol |
| Transimex Transportation |
Saigon Beer and Transimex Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and Transimex Transportation
The main advantage of trading using opposite Saigon Beer and Transimex Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer position performs unexpectedly, Transimex Transportation 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 Transimex Transportation will offset losses from the drop in Transimex Transportation'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 |
| Transimex Transportation vs. Saigon Beer Alcohol | Transimex Transportation vs. CEO Group JSC | Transimex Transportation vs. Picomat Plastic JSC | Transimex Transportation vs. Tien Phong Plastic |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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