Correlation Between Saigon Telecommunicatio and Plastic Additives
Can any of the company-specific risk be diversified away by investing in both Saigon Telecommunicatio and Plastic Additives 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 Plastic Additives 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 Plastic Additives JSC, you can compare the effects of market volatilities on Saigon Telecommunicatio and Plastic Additives 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 Plastic Additives. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Telecommunicatio and Plastic Additives.
Diversification Opportunities for Saigon Telecommunicatio and Plastic Additives
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saigon and Plastic is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Telecommunication Techn and Plastic Additives JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plastic Additives 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 Plastic Additives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plastic Additives JSC has no effect on the direction of Saigon Telecommunicatio i.e., Saigon Telecommunicatio and Plastic Additives go up and down completely randomly.
Pair Corralation between Saigon Telecommunicatio and Plastic Additives
Assuming the 90 days trading horizon Saigon Telecommunicatio is expected to generate 84.38 times less return on investment than Plastic Additives. But when comparing it to its historical volatility, Saigon Telecommunication Technologies is 3.01 times less risky than Plastic Additives. It trades about 0.01 of its potential returns per unit of risk. Plastic Additives JSC is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 800,000 in Plastic Additives JSC on September 1, 2024 and sell it today you would earn a total of 180,000 from holding Plastic Additives JSC or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Telecommunication Techn vs. Plastic Additives JSC
Performance |
| Timeline |
| Saigon Telecommunicatio |
| Plastic Additives JSC |
Saigon Telecommunicatio and Plastic Additives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Telecommunicatio and Plastic Additives
The main advantage of trading using opposite Saigon Telecommunicatio and Plastic Additives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Telecommunicatio position performs unexpectedly, Plastic Additives 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 Plastic Additives will offset losses from the drop in Plastic Additives' long position.| Saigon Telecommunicatio vs. FIT INVEST JSC | Saigon Telecommunicatio vs. Damsan JSC | Saigon Telecommunicatio vs. An Phat Plastic | Saigon Telecommunicatio vs. Alphanam ME |
| Plastic Additives vs. Song Hong Garment | Plastic Additives vs. Alphanam ME | Plastic Additives vs. Hochiminh City Metal | Plastic Additives vs. Atesco Industrial Cartering |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |