Correlation Between Saigon Beer and Vietnam National
Can any of the company-specific risk be diversified away by investing in both Saigon Beer and Vietnam National 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 Vietnam National 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 Vietnam National Reinsurance, you can compare the effects of market volatilities on Saigon Beer and Vietnam National 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 Vietnam National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and Vietnam National.
Diversification Opportunities for Saigon Beer and Vietnam National
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saigon and Vietnam is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and Vietnam National Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam National Rei 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 Vietnam National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam National Rei has no effect on the direction of Saigon Beer i.e., Saigon Beer and Vietnam National go up and down completely randomly.
Pair Corralation between Saigon Beer and Vietnam National
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to under-perform the Vietnam National. In addition to that, Saigon Beer is 1.15 times more volatile than Vietnam National Reinsurance. It trades about -0.22 of its total potential returns per unit of risk. Vietnam National Reinsurance is currently generating about 0.04 per unit of volatility. If you would invest 2,170,000 in Vietnam National Reinsurance on October 12, 2024 and sell it today you would earn a total of 10,000 from holding Vietnam National Reinsurance or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. Vietnam National Reinsurance
Performance |
| Timeline |
| Saigon Beer Alcohol |
| Vietnam National Rei |
Saigon Beer and Vietnam National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and Vietnam National
The main advantage of trading using opposite Saigon Beer and Vietnam National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer position performs unexpectedly, Vietnam National 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 Vietnam National will offset losses from the drop in Vietnam National's long position.| Saigon Beer vs. Saigon Telecommunication Technologies | Saigon Beer vs. Vietnam Airlines JSC | Saigon Beer vs. Tin Nghia Industrial | Saigon Beer vs. Dinhvu Port Investment |
| Vietnam National vs. Construction And Investment | Vietnam National vs. Development Investment Construction | Vietnam National vs. Saigon Beer Alcohol | Vietnam National vs. SMC Investment Trading |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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