Correlation Between Vu Dang and Vincom Retail
Can any of the company-specific risk be diversified away by investing in both Vu Dang and Vincom Retail 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 Vincom Retail 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 Vincom Retail JSC, you can compare the effects of market volatilities on Vu Dang and Vincom Retail 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 Vincom Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vu Dang and Vincom Retail.
Diversification Opportunities for Vu Dang and Vincom Retail
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between SVD and Vincom is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Vu Dang Investment and Vincom Retail JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vincom Retail JSC 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 Vincom Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vincom Retail JSC has no effect on the direction of Vu Dang i.e., Vu Dang and Vincom Retail go up and down completely randomly.
Pair Corralation between Vu Dang and Vincom Retail
Assuming the 90 days trading horizon Vu Dang Investment is expected to generate 2.26 times more return on investment than Vincom Retail. However, Vu Dang is 2.26 times more volatile than Vincom Retail JSC. It trades about -0.01 of its potential returns per unit of risk. Vincom Retail JSC is currently generating about -0.17 per unit of risk. If you would invest 325,000 in Vu Dang Investment on October 30, 2024 and sell it today you would lose (6,000) from holding Vu Dang Investment or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vu Dang Investment vs. Vincom Retail JSC
Performance |
| Timeline |
| Vu Dang Investment |
| Vincom Retail JSC |
Vu Dang and Vincom Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vu Dang and Vincom Retail
The main advantage of trading using opposite Vu Dang and Vincom Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vu Dang position performs unexpectedly, Vincom Retail 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 Vincom Retail will offset losses from the drop in Vincom Retail's long position.| Vu Dang vs. VTC Telecommunications JSC | Vu Dang vs. Transimex Transportation JSC | Vu Dang vs. Ha Noi Education | Vu Dang vs. Danang Education Investment |
| Vincom Retail vs. Construction And Investment | Vincom Retail vs. Thanh Dat Investment | Vincom Retail vs. Dinhvu Port Investment | Vincom Retail vs. 577 Investment Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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