Correlation Between Saigon Telecommunicatio and VN Index
Can any of the company-specific risk be diversified away by investing in both Saigon Telecommunicatio and VN Index 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 VN Index 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 VN Index, you can compare the effects of market volatilities on Saigon Telecommunicatio and VN Index 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 VN Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Telecommunicatio and VN Index.
Diversification Opportunities for Saigon Telecommunicatio and VN Index
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saigon and VNI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Telecommunication Techn and VN Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VN Index 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 VN Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VN Index has no effect on the direction of Saigon Telecommunicatio i.e., Saigon Telecommunicatio and VN Index go up and down completely randomly.
Pair Corralation between Saigon Telecommunicatio and VN Index
Assuming the 90 days trading horizon Saigon Telecommunication Technologies is expected to generate 2.54 times more return on investment than VN Index. However, Saigon Telecommunicatio is 2.54 times more volatile than VN Index. It trades about 0.05 of its potential returns per unit of risk. VN Index is currently generating about 0.05 per unit of risk. If you would invest 1,210,000 in Saigon Telecommunication Technologies on September 4, 2024 and sell it today you would earn a total of 295,000 from holding Saigon Telecommunication Technologies or generate 24.38% 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. VN Index
Performance |
| Timeline |
Saigon Telecommunicatio and VN Index Volatility Contrast
Predicted Return Density |
| Returns |
Saigon Telecommunication Technologies
Pair trading matchups for Saigon Telecommunicatio
VN Index
Pair trading matchups for VN Index
Pair Trading with Saigon Telecommunicatio and VN Index
The main advantage of trading using opposite Saigon Telecommunicatio and VN Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Telecommunicatio position performs unexpectedly, VN Index 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 VN Index will offset losses from the drop in VN Index's long position.| Saigon Telecommunicatio vs. Transport and Industry | Saigon Telecommunicatio vs. 577 Investment Corp | Saigon Telecommunicatio vs. Ba Ria Thermal | Saigon Telecommunicatio vs. Dinhvu Port Investment |
| VN Index vs. Fecon Mining JSC | VN Index vs. Elcom Technology Communications | VN Index vs. Pacific Petroleum Transportation | VN Index vs. Transport and Industry |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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