Correlation Between Saigon Viendong and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Thanh Dat 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 Thanh Dat 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 Thanh Dat Investment, you can compare the effects of market volatilities on Saigon Viendong and Thanh Dat 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 Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Thanh Dat.
Diversification Opportunities for Saigon Viendong and Thanh Dat
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Saigon and Thanh is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat Investment 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 Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Thanh Dat go up and down completely randomly.
Pair Corralation between Saigon Viendong and Thanh Dat
Assuming the 90 days trading horizon Saigon Viendong is expected to generate 1.69 times less return on investment than Thanh Dat. But when comparing it to its historical volatility, Saigon Viendong Technology is 1.36 times less risky than Thanh Dat. It trades about 0.02 of its potential returns per unit of risk. Thanh Dat Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,238,185 in Thanh Dat Investment on August 27, 2024 and sell it today you would earn a total of 321,815 from holding Thanh Dat Investment or generate 14.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.69% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Thanh Dat Investment
Performance |
| Timeline |
| Saigon Viendong Tech |
| Thanh Dat Investment |
Saigon Viendong and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and Thanh Dat
The main advantage of trading using opposite Saigon Viendong and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's 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 |
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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 Stocks Directory module to find actively traded stocks across global markets.
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