Correlation Between Vu Dang and Saigon Beer
Can any of the company-specific risk be diversified away by investing in both Vu Dang and Saigon Beer 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 Saigon Beer 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 Saigon Beer Alcohol, you can compare the effects of market volatilities on Vu Dang and Saigon Beer 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 Saigon Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vu Dang and Saigon Beer.
Diversification Opportunities for Vu Dang and Saigon Beer
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SVD and Saigon is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vu Dang Investment and Saigon Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Beer Alcohol 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 Saigon Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Beer Alcohol has no effect on the direction of Vu Dang i.e., Vu Dang and Saigon Beer go up and down completely randomly.
Pair Corralation between Vu Dang and Saigon Beer
Assuming the 90 days trading horizon Vu Dang Investment is expected to generate 2.6 times more return on investment than Saigon Beer. However, Vu Dang is 2.6 times more volatile than Saigon Beer Alcohol. It trades about -0.03 of its potential returns per unit of risk. Saigon Beer Alcohol is currently generating about -0.21 per unit of risk. If you would invest 326,000 in Vu Dang Investment on October 31, 2024 and sell it today you would lose (7,000) from holding Vu Dang Investment or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vu Dang Investment vs. Saigon Beer Alcohol
Performance |
| Timeline |
| Vu Dang Investment |
| Saigon Beer Alcohol |
Vu Dang and Saigon Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vu Dang and Saigon Beer
The main advantage of trading using opposite Vu Dang and Saigon Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vu Dang position performs unexpectedly, Saigon Beer 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 Saigon Beer will offset losses from the drop in Saigon Beer's long position.| Vu Dang vs. TDT Investment and | Vu Dang vs. Military Insurance Corp | Vu Dang vs. Viet Thanh Plastic | Vu Dang vs. Picomat Plastic JSC |
| Saigon Beer vs. Post and Telecommunications | Saigon Beer vs. Petrolimex Insurance Corp | Saigon Beer vs. Ducgiang Chemicals Detergent | Saigon Beer vs. Vietnam National Reinsurance |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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