Correlation Between Sao Vang and Thong Nhat
Can any of the company-specific risk be diversified away by investing in both Sao Vang and Thong Nhat 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 Sao Vang and Thong Nhat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sao Vang Rubber and Thong Nhat Rubber, you can compare the effects of market volatilities on Sao Vang and Thong Nhat 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 Sao Vang with a short position of Thong Nhat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sao Vang and Thong Nhat.
Diversification Opportunities for Sao Vang and Thong Nhat
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sao and Thong is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sao Vang Rubber and Thong Nhat Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thong Nhat Rubber and Sao Vang 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 Sao Vang Rubber are associated (or correlated) with Thong Nhat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thong Nhat Rubber has no effect on the direction of Sao Vang i.e., Sao Vang and Thong Nhat go up and down completely randomly.
Pair Corralation between Sao Vang and Thong Nhat
Assuming the 90 days trading horizon Sao Vang Rubber is expected to generate 0.71 times more return on investment than Thong Nhat. However, Sao Vang Rubber is 1.4 times less risky than Thong Nhat. It trades about 0.05 of its potential returns per unit of risk. Thong Nhat Rubber is currently generating about -0.04 per unit of risk. If you would invest 1,666,366 in Sao Vang Rubber on September 3, 2024 and sell it today you would earn a total of 903,634 from holding Sao Vang Rubber or generate 54.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 57.64% |
| Values | Daily Returns |
Sao Vang Rubber vs. Thong Nhat Rubber
Performance |
| Timeline |
| Sao Vang Rubber |
| Thong Nhat Rubber |
Sao Vang and Thong Nhat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sao Vang and Thong Nhat
The main advantage of trading using opposite Sao Vang and Thong Nhat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sao Vang position performs unexpectedly, Thong Nhat 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 Thong Nhat will offset losses from the drop in Thong Nhat's long position.| Sao Vang vs. FIT INVEST JSC | Sao Vang vs. Damsan JSC | Sao Vang vs. An Phat Plastic | Sao Vang vs. Alphanam ME |
| Thong Nhat vs. Nafoods Group JSC | Thong Nhat vs. Vietnam Rubber Group | Thong Nhat vs. Dong Nai Plastic | Thong Nhat 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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