Correlation Between Saigon Beer and Vincom Retail
Can any of the company-specific risk be diversified away by investing in both Saigon Beer and Vincom Retail 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 Vincom Retail 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 Vincom Retail JSC, you can compare the effects of market volatilities on Saigon Beer and Vincom Retail 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 Vincom Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and Vincom Retail.
Diversification Opportunities for Saigon Beer and Vincom Retail
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saigon and Vincom is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and Vincom Retail JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vincom Retail JSC 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 Vincom Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vincom Retail JSC has no effect on the direction of Saigon Beer i.e., Saigon Beer and Vincom Retail go up and down completely randomly.
Pair Corralation between Saigon Beer and Vincom Retail
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to generate 0.86 times more return on investment than Vincom Retail. However, Saigon Beer Alcohol is 1.16 times less risky than Vincom Retail. It trades about -0.08 of its potential returns per unit of risk. Vincom Retail JSC is currently generating about -0.34 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. Vincom Retail JSC
Performance |
| Timeline |
| Saigon Beer Alcohol |
| Vincom Retail JSC |
Saigon Beer and Vincom Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and Vincom Retail
The main advantage of trading using opposite Saigon Beer and Vincom Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer position performs unexpectedly, Vincom Retail 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 Vincom Retail will offset losses from the drop in Vincom Retail'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 |
| Vincom Retail vs. TDT Investment and | Vincom Retail vs. Thanh Dat Investment | Vincom Retail vs. South Basic Chemicals | Vincom Retail vs. Bao Ngoc Investment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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