Correlation Between SCG Construction and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both SCG Construction and Hanoi Beer 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 SCG Construction and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCG Construction JSC and Hanoi Beer Alcohol, you can compare the effects of market volatilities on SCG Construction and Hanoi Beer 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 SCG Construction with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG Construction and Hanoi Beer.
Diversification Opportunities for SCG Construction and Hanoi Beer
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCG and Hanoi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SCG Construction JSC and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol and SCG Construction 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 SCG Construction JSC are associated (or correlated) with Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of SCG Construction i.e., SCG Construction and Hanoi Beer go up and down completely randomly.
Pair Corralation between SCG Construction and Hanoi Beer
Assuming the 90 days trading horizon SCG Construction is expected to generate 1.58 times less return on investment than Hanoi Beer. But when comparing it to its historical volatility, SCG Construction JSC is 3.19 times less risky than Hanoi Beer. It trades about 0.03 of its potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,771,139 in Hanoi Beer Alcohol on August 31, 2024 and sell it today you would earn a total of 108,861 from holding Hanoi Beer Alcohol or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.46% |
| Values | Daily Returns |
SCG Construction JSC vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| SCG Construction JSC |
| Hanoi Beer Alcohol |
SCG Construction and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG Construction and Hanoi Beer
The main advantage of trading using opposite SCG Construction and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG Construction position performs unexpectedly, Hanoi Beer 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 Hanoi Beer will offset losses from the drop in Hanoi Beer's long position.| SCG Construction vs. TDT Investment and | SCG Construction vs. Ha Long Investment | SCG Construction vs. Mobile World Investment | SCG Construction vs. Petrolimex Information Technology |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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