Correlation Between Vu Dang and Hai An
Can any of the company-specific risk be diversified away by investing in both Vu Dang and Hai An 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 Vu Dang and Hai An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vu Dang Investment and Hai An Transport, you can compare the effects of market volatilities on Vu Dang and Hai An 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 Vu Dang with a short position of Hai An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vu Dang and Hai An.
Diversification Opportunities for Vu Dang and Hai An
Very weak diversification
The 3 months correlation between SVD and Hai is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vu Dang Investment and Hai An Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hai An Transport and Vu Dang 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 Vu Dang Investment are associated (or correlated) with Hai An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hai An Transport has no effect on the direction of Vu Dang i.e., Vu Dang and Hai An go up and down completely randomly.
Pair Corralation between Vu Dang and Hai An
Assuming the 90 days trading horizon Vu Dang Investment is expected to generate 1.28 times more return on investment than Hai An. However, Vu Dang is 1.28 times more volatile than Hai An Transport. It trades about 0.15 of its potential returns per unit of risk. Hai An Transport is currently generating about 0.14 per unit of risk. If you would invest 320,000 in Vu Dang Investment on September 13, 2024 and sell it today you would earn a total of 30,000 from holding Vu Dang Investment or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vu Dang Investment vs. Hai An Transport
Performance |
| Timeline |
| Vu Dang Investment |
| Hai An Transport |
Vu Dang and Hai An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vu Dang and Hai An
The main advantage of trading using opposite Vu Dang and Hai An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vu Dang position performs unexpectedly, Hai An 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 Hai An will offset losses from the drop in Hai An's long position.| Vu Dang vs. Kien Giang Construction | Vu Dang vs. Binh Duong Construction | Vu Dang vs. VietinBank Securities JSC | Vu Dang vs. SCG Construction JSC |
| Hai An vs. 1369 Construction JSC | Hai An vs. Techno Agricultural Supplying | Hai An vs. Saigon Viendong Technology | Hai An vs. Binh Duong Construction |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |