Correlation Between Saigon Viendong and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Saigon Viendong and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Dow Jones.
Diversification Opportunities for Saigon Viendong and Dow Jones
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Saigon and Dow is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Dow Jones go up and down completely randomly.
Pair Corralation between Saigon Viendong and Dow Jones
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate 3.36 times more return on investment than Dow Jones. However, Saigon Viendong is 3.36 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of risk. If you would invest 859,150 in Saigon Viendong Technology on August 27, 2024 and sell it today you would earn a total of 260,850 from holding Saigon Viendong Technology or generate 30.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.82% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Dow Jones Industrial
Performance |
| Timeline |
Saigon Viendong and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Saigon Viendong Technology
Pair trading matchups for Saigon Viendong
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Saigon Viendong and Dow Jones
The main advantage of trading using opposite Saigon Viendong and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Saigon Viendong vs. Thanh Dat Investment | Saigon Viendong vs. HVC Investment and | Saigon Viendong vs. Tien Giang Investment | Saigon Viendong vs. Sea Air Freight |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |