Correlation Between Saigon Viendong and Japan Vietnam
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Japan Vietnam 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 Japan Vietnam 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 Japan Vietnam Medical, you can compare the effects of market volatilities on Saigon Viendong and Japan Vietnam 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 Japan Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Japan Vietnam.
Diversification Opportunities for Saigon Viendong and Japan Vietnam
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saigon and Japan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Japan Vietnam Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Vietnam Medical 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 Japan Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Vietnam Medical has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Japan Vietnam go up and down completely randomly.
Pair Corralation between Saigon Viendong and Japan Vietnam
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate 1.15 times more return on investment than Japan Vietnam. However, Saigon Viendong is 1.15 times more volatile than Japan Vietnam Medical. It trades about 0.03 of its potential returns per unit of risk. Japan Vietnam Medical is currently generating about 0.01 per unit of risk. If you would invest 913,331 in Saigon Viendong Technology on September 19, 2024 and sell it today you would earn a total of 236,669 from holding Saigon Viendong Technology or generate 25.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.79% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Japan Vietnam Medical
Performance |
| Timeline |
| Saigon Viendong Tech |
| Japan Vietnam Medical |
Saigon Viendong and Japan Vietnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and Japan Vietnam
The main advantage of trading using opposite Saigon Viendong and Japan Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Japan Vietnam 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 Japan Vietnam will offset losses from the drop in Japan Vietnam's long position.| Saigon Viendong vs. 577 Investment Corp | Saigon Viendong vs. Sea Air Freight | Saigon Viendong vs. Vina2 Investment and | Saigon Viendong vs. Construction And Investment |
| Japan Vietnam vs. Elcom Technology Communications | Japan Vietnam vs. Vietnam Petroleum Transport | Japan Vietnam vs. Saigon Viendong Technology | Japan Vietnam vs. Hai An Transport |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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