Correlation Between Hung Hau and Vina2 Investment
Can any of the company-specific risk be diversified away by investing in both Hung Hau and Vina2 Investment 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 Vina2 Investment 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 Vina2 Investment and, you can compare the effects of market volatilities on Hung Hau and Vina2 Investment 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 Vina2 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Hau and Vina2 Investment.
Diversification Opportunities for Hung Hau and Vina2 Investment
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hung and Vina2 is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hung Hau Agricultural and Vina2 Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina2 Investment 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 Vina2 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina2 Investment has no effect on the direction of Hung Hau i.e., Hung Hau and Vina2 Investment go up and down completely randomly.
Pair Corralation between Hung Hau and Vina2 Investment
Assuming the 90 days trading horizon Hung Hau Agricultural is expected to generate 1.24 times more return on investment than Vina2 Investment. However, Hung Hau is 1.24 times more volatile than Vina2 Investment and. It trades about 0.2 of its potential returns per unit of risk. Vina2 Investment and is currently generating about -0.11 per unit of risk. If you would invest 980,000 in Hung Hau Agricultural on September 2, 2024 and sell it today you would earn a total of 70,000 from holding Hung Hau Agricultural or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.14% |
| Values | Daily Returns |
Hung Hau Agricultural vs. Vina2 Investment and
Performance |
| Timeline |
| Hung Hau Agricultural |
| Vina2 Investment |
Hung Hau and Vina2 Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Hau and Vina2 Investment
The main advantage of trading using opposite Hung Hau and Vina2 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Hau position performs unexpectedly, Vina2 Investment 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 Vina2 Investment will offset losses from the drop in Vina2 Investment's long position.| Hung Hau vs. Song Hong Garment | Hung Hau vs. Alphanam ME | Hung Hau vs. Hochiminh City Metal | Hung Hau vs. Atesco Industrial Cartering |
| Vina2 Investment vs. FIT INVEST JSC | Vina2 Investment vs. Damsan JSC | Vina2 Investment vs. An Phat Plastic | Vina2 Investment 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |