Correlation Between Vu Dang and VBC
Can any of the company-specific risk be diversified away by investing in both Vu Dang and VBC 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 VBC 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 VBC, you can compare the effects of market volatilities on Vu Dang and VBC 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 VBC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vu Dang and VBC.
Diversification Opportunities for Vu Dang and VBC
Very good diversification
The 3 months correlation between SVD and VBC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Vu Dang Investment and VBC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VBC 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 VBC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VBC has no effect on the direction of Vu Dang i.e., Vu Dang and VBC go up and down completely randomly.
Pair Corralation between Vu Dang and VBC
If you would invest 284,000 in Vu Dang Investment on September 2, 2024 and sell it today you would earn a total of 47,000 from holding Vu Dang Investment or generate 16.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Vu Dang Investment vs. VBC
Performance |
| Timeline |
| Vu Dang Investment |
| VBC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vu Dang and VBC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vu Dang and VBC
The main advantage of trading using opposite Vu Dang and VBC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vu Dang position performs unexpectedly, VBC 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 VBC will offset losses from the drop in VBC's long position.The idea behind Vu Dang Investment and VBC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| VBC vs. Thanh Dat Investment | VBC vs. Development Investment Construction | VBC vs. MST Investment JSC | VBC vs. Techcom Vietnam REIT |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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