Correlation Between South Books and Viettel Construction
Can any of the company-specific risk be diversified away by investing in both South Books 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 South Books and Viettel Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Books Educational and Viettel Construction JSC, you can compare the effects of market volatilities on South Books 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 South Books with a short position of Viettel Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Books and Viettel Construction.
Diversification Opportunities for South Books and Viettel Construction
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between South and Viettel is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding South Books Educational 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 South Books 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 South Books Educational 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 South Books i.e., South Books and Viettel Construction go up and down completely randomly.
Pair Corralation between South Books and Viettel Construction
Assuming the 90 days trading horizon South Books Educational is expected to generate 1.26 times more return on investment than Viettel Construction. However, South Books is 1.26 times more volatile than Viettel Construction JSC. It trades about 0.05 of its potential returns per unit of risk. Viettel Construction JSC is currently generating about -0.02 per unit of risk. If you would invest 1,240,000 in South Books Educational on September 3, 2024 and sell it today you would earn a total of 60,000 from holding South Books Educational or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.16% |
| Values | Daily Returns |
South Books Educational vs. Viettel Construction JSC
Performance |
| Timeline |
| South Books Educational |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Viettel Construction JSC |
South Books and Viettel Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Books and Viettel Construction
The main advantage of trading using opposite South Books and Viettel Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Books 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.| South Books vs. Alphanam ME | South Books vs. Hochiminh City Metal | South Books vs. Atesco Industrial Cartering | South Books vs. Danang Education Investment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |