Correlation Between Sea Air and Viet Thanh
Can any of the company-specific risk be diversified away by investing in both Sea Air and Viet Thanh 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 Sea Air and Viet Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea Air Freight and Viet Thanh Plastic, you can compare the effects of market volatilities on Sea Air and Viet Thanh 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 Sea Air with a short position of Viet Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea Air and Viet Thanh.
Diversification Opportunities for Sea Air and Viet Thanh
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sea and Viet is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sea Air Freight and Viet Thanh Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viet Thanh Plastic and Sea Air 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 Sea Air Freight are associated (or correlated) with Viet Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viet Thanh Plastic has no effect on the direction of Sea Air i.e., Sea Air and Viet Thanh go up and down completely randomly.
Pair Corralation between Sea Air and Viet Thanh
Assuming the 90 days trading horizon Sea Air Freight is expected to under-perform the Viet Thanh. But the stock apears to be less risky and, when comparing its historical volatility, Sea Air Freight is 1.1 times less risky than Viet Thanh. The stock trades about -0.17 of its potential returns per unit of risk. The Viet Thanh Plastic is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 1,750,000 in Viet Thanh Plastic on October 17, 2024 and sell it today you would lose (70,000) from holding Viet Thanh Plastic or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Sea Air Freight vs. Viet Thanh Plastic
Performance |
| Timeline |
| Sea Air Freight |
| Viet Thanh Plastic |
Sea Air and Viet Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea Air and Viet Thanh
The main advantage of trading using opposite Sea Air and Viet Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea Air position performs unexpectedly, Viet Thanh 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 Viet Thanh will offset losses from the drop in Viet Thanh's long position.| Sea Air vs. FIT INVEST JSC | Sea Air vs. Damsan JSC | Sea Air vs. An Phat Plastic | Sea Air vs. APG Securities Joint |
| Viet Thanh vs. Vnsteel Vicasa JSC | Viet Thanh vs. Dong A Hotel | Viet Thanh vs. Nam Kim Steel | Viet Thanh vs. Sea Air Freight |
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..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |