Correlation Between Saigon Telecommunicatio and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both Saigon Telecommunicatio and Mekong Fisheries 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 Telecommunicatio and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Telecommunication Technologies and Mekong Fisheries JSC, you can compare the effects of market volatilities on Saigon Telecommunicatio and Mekong Fisheries 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 Telecommunicatio with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Telecommunicatio and Mekong Fisheries.
Diversification Opportunities for Saigon Telecommunicatio and Mekong Fisheries
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saigon and Mekong is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Telecommunication Techn and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and Saigon Telecommunicatio 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 Telecommunication Technologies are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of Saigon Telecommunicatio i.e., Saigon Telecommunicatio and Mekong Fisheries go up and down completely randomly.
Pair Corralation between Saigon Telecommunicatio and Mekong Fisheries
Assuming the 90 days trading horizon Saigon Telecommunication Technologies is expected to generate 0.56 times more return on investment than Mekong Fisheries. However, Saigon Telecommunication Technologies is 1.79 times less risky than Mekong Fisheries. It trades about 0.73 of its potential returns per unit of risk. Mekong Fisheries JSC is currently generating about 0.02 per unit of risk. If you would invest 1,690,000 in Saigon Telecommunication Technologies on November 5, 2024 and sell it today you would earn a total of 295,000 from holding Saigon Telecommunication Technologies or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
Saigon Telecommunication Techn vs. Mekong Fisheries JSC
Performance |
| Timeline |
| Saigon Telecommunicatio |
| Mekong Fisheries JSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Saigon Telecommunicatio and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Telecommunicatio and Mekong Fisheries
The main advantage of trading using opposite Saigon Telecommunicatio and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Telecommunicatio position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.| Saigon Telecommunicatio vs. Elcom Technology Communications | Saigon Telecommunicatio vs. POST TELECOMMU | Saigon Telecommunicatio vs. Nafoods Group JSC | Saigon Telecommunicatio vs. Vietnam Construction JSC |
| Mekong Fisheries vs. Post and Telecommunications | Mekong Fisheries vs. PetroVietnam Transportation Corp | Mekong Fisheries vs. Hai An Transport | Mekong Fisheries vs. Vincom Retail JSC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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