Correlation Between Saigon Beer and VBC
Can any of the company-specific risk be diversified away by investing in both Saigon Beer and VBC 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 VBC 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 VBC, you can compare the effects of market volatilities on Saigon Beer and VBC 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 VBC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and VBC.
Diversification Opportunities for Saigon Beer and VBC
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Saigon and VBC is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and VBC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VBC 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 VBC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VBC has no effect on the direction of Saigon Beer i.e., Saigon Beer and VBC go up and down completely randomly.
Pair Corralation between Saigon Beer and VBC
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to generate 1.11 times more return on investment than VBC. However, Saigon Beer is 1.11 times more volatile than VBC. It trades about 0.0 of its potential returns per unit of risk. VBC is currently generating about -0.07 per unit of risk. If you would invest 5,550,000 in Saigon Beer Alcohol on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Saigon Beer Alcohol or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. VBC
Performance |
| Timeline |
| Saigon Beer Alcohol |
| VBC |
Saigon Beer and VBC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and VBC
The main advantage of trading using opposite Saigon Beer and VBC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer position performs unexpectedly, VBC 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 VBC will offset losses from the drop in VBC's long position.| Saigon Beer vs. Century Synthetic Fiber | Saigon Beer vs. Vietnam Dairy Products | Saigon Beer vs. Petrovietnam Drilling Mud | Saigon Beer vs. Ha Noi Education |
| VBC vs. Viet Thanh Plastic | VBC vs. Foreign Trade Development | VBC vs. Tay Ninh Rubber | VBC vs. Saigon Beer Alcohol |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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