Correlation Between Hung Hau and Viettel Construction
Can any of the company-specific risk be diversified away by investing in both Hung Hau and Viettel Construction 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 Hung Hau and Viettel Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hung Hau Agricultural and Viettel Construction JSC, you can compare the effects of market volatilities on Hung Hau and Viettel Construction 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 Hung Hau with a short position of Viettel Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Hau and Viettel Construction.
Diversification Opportunities for Hung Hau and Viettel Construction
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hung and Viettel is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hung Hau Agricultural and Viettel Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viettel Construction JSC and Hung Hau 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 Hung Hau Agricultural are associated (or correlated) with Viettel Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viettel Construction JSC has no effect on the direction of Hung Hau i.e., Hung Hau and Viettel Construction go up and down completely randomly.
Pair Corralation between Hung Hau and Viettel Construction
Assuming the 90 days trading horizon Hung Hau is expected to generate 3.2 times less return on investment than Viettel Construction. In addition to that, Hung Hau is 2.15 times more volatile than Viettel Construction JSC. It trades about 0.01 of its total potential returns per unit of risk. Viettel Construction JSC is currently generating about 0.09 per unit of volatility. If you would invest 4,754,712 in Viettel Construction JSC on August 27, 2024 and sell it today you would earn a total of 7,135,288 from holding Viettel Construction JSC or generate 150.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.02% |
| Values | Daily Returns |
Hung Hau Agricultural vs. Viettel Construction JSC
Performance |
| Timeline |
| Hung Hau Agricultural |
| Viettel Construction JSC |
Hung Hau and Viettel Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Hau and Viettel Construction
The main advantage of trading using opposite Hung Hau and Viettel Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Hau position performs unexpectedly, Viettel Construction 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 Viettel Construction will offset losses from the drop in Viettel Construction's long position.| Hung Hau vs. Saigon Viendong Technology | Hung Hau vs. Post and Telecommunications | Hung Hau vs. Foreign Trade Development | Hung Hau vs. VTC Telecommunications JSC |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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