Correlation Between SMC Investment and VN Index
Can any of the company-specific risk be diversified away by investing in both SMC Investment 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 SMC Investment and VN Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMC Investment Trading and VN Index, you can compare the effects of market volatilities on SMC Investment 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 SMC Investment with a short position of VN Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMC Investment and VN Index.
Diversification Opportunities for SMC Investment and VN Index
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMC and VNI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SMC Investment Trading and VN Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VN Index and SMC Investment 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 SMC Investment Trading 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 SMC Investment i.e., SMC Investment and VN Index go up and down completely randomly.
Pair Corralation between SMC Investment and VN Index
If you would invest 684,000 in SMC Investment Trading on October 9, 2024 and sell it today you would earn a total of 92,000 from holding SMC Investment Trading or generate 13.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
SMC Investment Trading vs. VN Index
Performance |
| Timeline |
SMC Investment and VN Index Volatility Contrast
Predicted Return Density |
| Returns |
SMC Investment Trading
Pair trading matchups for SMC Investment
VN Index
Pair trading matchups for VN Index
Pair Trading with SMC Investment and VN Index
The main advantage of trading using opposite SMC Investment and VN Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMC Investment 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.| SMC Investment vs. Ben Thanh Rubber | SMC Investment vs. FPT Digital Retail | SMC Investment vs. BaoMinh Insurance Corp | SMC Investment vs. Sao Vang Rubber |
| VN Index vs. Hanoi Beer Alcohol | VN Index vs. Southern Rubber Industry | VN Index vs. Bao Ngoc Investment | VN Index vs. Fecon Mining JSC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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