Correlation Between Construction JSC and SSIAM VNFIN
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By analyzing existing cross correlation between Construction JSC No5 and SSIAM VNFIN LEAD, you can compare the effects of market volatilities on Construction JSC and SSIAM VNFIN 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 Construction JSC with a short position of SSIAM VNFIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Construction JSC and SSIAM VNFIN.
Diversification Opportunities for Construction JSC and SSIAM VNFIN
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Construction and SSIAM is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Construction JSC No5 and SSIAM VNFIN LEAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSIAM VNFIN LEAD and Construction JSC 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 Construction JSC No5 are associated (or correlated) with SSIAM VNFIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSIAM VNFIN LEAD has no effect on the direction of Construction JSC i.e., Construction JSC and SSIAM VNFIN go up and down completely randomly.
Pair Corralation between Construction JSC and SSIAM VNFIN
Assuming the 90 days trading horizon Construction JSC No5 is expected to generate 2.9 times more return on investment than SSIAM VNFIN. However, Construction JSC is 2.9 times more volatile than SSIAM VNFIN LEAD. It trades about 0.03 of its potential returns per unit of risk. SSIAM VNFIN LEAD is currently generating about 0.04 per unit of risk. If you would invest 1,891,798 in Construction JSC No5 on September 12, 2024 and sell it today you would earn a total of 108,202 from holding Construction JSC No5 or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 62.5% |
| Values | Daily Returns |
Construction JSC No5 vs. SSIAM VNFIN LEAD
Performance |
| Timeline |
| Construction JSC No5 |
| SSIAM VNFIN LEAD |
Construction JSC and SSIAM VNFIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Construction JSC and SSIAM VNFIN
The main advantage of trading using opposite Construction JSC and SSIAM VNFIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Construction JSC position performs unexpectedly, SSIAM VNFIN 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 SSIAM VNFIN will offset losses from the drop in SSIAM VNFIN's long position.| Construction JSC vs. FIT INVEST JSC | Construction JSC vs. Damsan JSC | Construction JSC vs. An Phat Plastic | Construction JSC vs. Alphanam ME |
| SSIAM VNFIN vs. Idico JSC | SSIAM VNFIN vs. Song Hong Garment | SSIAM VNFIN vs. Vietnam Medicinal Materials | SSIAM VNFIN vs. Alphanam ME |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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