Correlation Between Vu Dang and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both Vu Dang and POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU, you can compare the effects of market volatilities on Vu Dang and POST TELECOMMU 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 POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vu Dang and POST TELECOMMU.
Diversification Opportunities for Vu Dang and POST TELECOMMU
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SVD and POST is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Vu Dang Investment and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU 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 POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of Vu Dang i.e., Vu Dang and POST TELECOMMU go up and down completely randomly.
Pair Corralation between Vu Dang and POST TELECOMMU
Assuming the 90 days trading horizon Vu Dang Investment is expected to generate 0.92 times more return on investment than POST TELECOMMU. However, Vu Dang Investment is 1.09 times less risky than POST TELECOMMU. It trades about 0.11 of its potential returns per unit of risk. POST TELECOMMU is currently generating about 0.07 per unit of risk. If you would invest 325,000 in Vu Dang Investment on September 15, 2024 and sell it today you would earn a total of 20,000 from holding Vu Dang Investment or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Vu Dang Investment vs. POST TELECOMMU
Performance |
| Timeline |
| Vu Dang Investment |
| POST TELECOMMU |
Vu Dang and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vu Dang and POST TELECOMMU
The main advantage of trading using opposite Vu Dang and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vu Dang position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| Vu Dang vs. Truong Thanh Furniture | Vu Dang vs. Hochiminh City Metal | Vu Dang vs. Fecon Mining JSC | Vu Dang vs. Southern Rubber Industry |
| POST TELECOMMU vs. Truong Thanh Furniture | POST TELECOMMU vs. Hanoi Plastics JSC | POST TELECOMMU vs. Pacific Petroleum Transportation | POST TELECOMMU vs. Saigon Beer Alcohol |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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