Correlation Between Saigon Viendong and Idico JSC
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Idico JSC 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 Idico JSC 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 Idico JSC, you can compare the effects of market volatilities on Saigon Viendong and Idico JSC 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 Idico JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Idico JSC.
Diversification Opportunities for Saigon Viendong and Idico JSC
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saigon and Idico is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Idico JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idico JSC 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 Idico JSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idico JSC has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Idico JSC go up and down completely randomly.
Pair Corralation between Saigon Viendong and Idico JSC
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate 1.17 times more return on investment than Idico JSC. However, Saigon Viendong is 1.17 times more volatile than Idico JSC. It trades about 0.05 of its potential returns per unit of risk. Idico JSC is currently generating about -0.03 per unit of risk. If you would invest 1,140,000 in Saigon Viendong Technology on September 14, 2024 and sell it today you would earn a total of 15,000 from holding Saigon Viendong Technology or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Idico JSC
Performance |
| Timeline |
| Saigon Viendong Tech |
| Idico JSC |
Saigon Viendong and Idico JSC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and Idico JSC
The main advantage of trading using opposite Saigon Viendong and Idico JSC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Idico JSC 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 Idico JSC will offset losses from the drop in Idico JSC'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 |
| Idico JSC vs. FIT INVEST JSC | Idico JSC vs. Damsan JSC | Idico JSC vs. An Phat Plastic | Idico JSC 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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