Correlation Between Saigon Viendong and Kien Giang
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Kien Giang 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 Saigon Viendong and Kien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Viendong Technology and Kien Giang Construction, you can compare the effects of market volatilities on Saigon Viendong and Kien Giang 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 Saigon Viendong with a short position of Kien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Kien Giang.
Diversification Opportunities for Saigon Viendong and Kien Giang
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saigon and Kien is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction and Saigon Viendong 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 Saigon Viendong Technology are associated (or correlated) with Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Kien Giang go up and down completely randomly.
Pair Corralation between Saigon Viendong and Kien Giang
Assuming the 90 days trading horizon Saigon Viendong is expected to generate 1.64 times less return on investment than Kien Giang. In addition to that, Saigon Viendong is 1.09 times more volatile than Kien Giang Construction. It trades about 0.03 of its total potential returns per unit of risk. Kien Giang Construction is currently generating about 0.06 per unit of volatility. If you would invest 1,990,000 in Kien Giang Construction on September 3, 2024 and sell it today you would earn a total of 295,000 from holding Kien Giang Construction or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.3% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Kien Giang Construction
Performance |
| Timeline |
| Saigon Viendong Tech |
| Kien Giang Construction |
Saigon Viendong and Kien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and Kien Giang
The main advantage of trading using opposite Saigon Viendong and Kien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Kien Giang 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 Kien Giang will offset losses from the drop in Kien Giang's long position.| Saigon Viendong vs. FIT INVEST JSC | Saigon Viendong vs. Damsan JSC | Saigon Viendong vs. An Phat Plastic | Saigon Viendong vs. Alphanam ME |
| Kien Giang vs. FIT INVEST JSC | Kien Giang vs. Damsan JSC | Kien Giang vs. An Phat Plastic | Kien Giang vs. Alphanam ME |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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