Correlation Between Saigon Machinery and Vina2 Investment
Can any of the company-specific risk be diversified away by investing in both Saigon Machinery 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 Saigon Machinery and Vina2 Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Machinery Spare and Vina2 Investment and, you can compare the effects of market volatilities on Saigon Machinery 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 Saigon Machinery with a short position of Vina2 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Machinery and Vina2 Investment.
Diversification Opportunities for Saigon Machinery and Vina2 Investment
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saigon and Vina2 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Machinery Spare and Vina2 Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina2 Investment and Saigon Machinery 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 Machinery Spare 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 Saigon Machinery i.e., Saigon Machinery and Vina2 Investment go up and down completely randomly.
Pair Corralation between Saigon Machinery and Vina2 Investment
Assuming the 90 days trading horizon Saigon Machinery Spare is expected to generate 1.29 times more return on investment than Vina2 Investment. However, Saigon Machinery is 1.29 times more volatile than Vina2 Investment and. It trades about 0.09 of its potential returns per unit of risk. Vina2 Investment and is currently generating about 0.03 per unit of risk. If you would invest 739,967 in Saigon Machinery Spare on October 16, 2024 and sell it today you would earn a total of 860,033 from holding Saigon Machinery Spare or generate 116.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.6% |
| Values | Daily Returns |
Saigon Machinery Spare vs. Vina2 Investment and
Performance |
| Timeline |
| Saigon Machinery Spare |
| Vina2 Investment |
Saigon Machinery and Vina2 Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Machinery and Vina2 Investment
The main advantage of trading using opposite Saigon Machinery and Vina2 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Machinery 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.| Saigon Machinery vs. Tien Giang Investment | Saigon Machinery vs. VTC Telecommunications JSC | Saigon Machinery vs. MST Investment JSC | Saigon Machinery vs. Din Capital Investment |
| Vina2 Investment vs. Song Hong Aluminum | Vina2 Investment vs. Hanoi Plastics JSC | Vina2 Investment vs. Transport and Industry | Vina2 Investment vs. Sao Vang Rubber |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |