Correlation Between Saigon Telecommunicatio and Masan Group
Can any of the company-specific risk be diversified away by investing in both Saigon Telecommunicatio and Masan Group 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 Masan Group 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 Masan Group Corp, you can compare the effects of market volatilities on Saigon Telecommunicatio and Masan Group 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 Masan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Telecommunicatio and Masan Group.
Diversification Opportunities for Saigon Telecommunicatio and Masan Group
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saigon and Masan is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Telecommunication Techn and Masan Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masan Group Corp 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 Masan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masan Group Corp has no effect on the direction of Saigon Telecommunicatio i.e., Saigon Telecommunicatio and Masan Group go up and down completely randomly.
Pair Corralation between Saigon Telecommunicatio and Masan Group
Assuming the 90 days trading horizon Saigon Telecommunication Technologies is expected to under-perform the Masan Group. In addition to that, Saigon Telecommunicatio is 1.65 times more volatile than Masan Group Corp. It trades about -0.02 of its total potential returns per unit of risk. Masan Group Corp is currently generating about 0.0 per unit of volatility. If you would invest 6,800,000 in Masan Group Corp on December 4, 2024 and sell it today you would earn a total of 0.00 from holding Masan Group Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Saigon Telecommunication Techn vs. Masan Group Corp
Performance |
| Timeline |
| Saigon Telecommunicatio |
| Masan Group Corp |
Saigon Telecommunicatio and Masan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Telecommunicatio and Masan Group
The main advantage of trading using opposite Saigon Telecommunicatio and Masan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Telecommunicatio position performs unexpectedly, Masan Group 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 Masan Group will offset losses from the drop in Masan Group's long position.The idea behind Saigon Telecommunication Technologies and Masan Group Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Masan Group vs. FIT INVEST JSC | Masan Group vs. Damsan JSC | Masan Group vs. An Phat Plastic | Masan Group 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |