Correlation Between Saigon Viendong and Hung Hau
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Hung Hau 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 Hung Hau 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 Hung Hau Agricultural, you can compare the effects of market volatilities on Saigon Viendong and Hung Hau 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 Hung Hau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Hung Hau.
Diversification Opportunities for Saigon Viendong and Hung Hau
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saigon and Hung is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Hung Hau Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hung Hau Agricultural 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 Hung Hau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hung Hau Agricultural has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Hung Hau go up and down completely randomly.
Pair Corralation between Saigon Viendong and Hung Hau
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate 0.47 times more return on investment than Hung Hau. However, Saigon Viendong Technology is 2.11 times less risky than Hung Hau. It trades about 0.04 of its potential returns per unit of risk. Hung Hau Agricultural is currently generating about 0.01 per unit of risk. If you would invest 832,060 in Saigon Viendong Technology on August 30, 2024 and sell it today you would earn a total of 302,940 from holding Saigon Viendong Technology or generate 36.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.31% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Hung Hau Agricultural
Performance |
| Timeline |
| Saigon Viendong Tech |
| Hung Hau Agricultural |
Saigon Viendong and Hung Hau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and Hung Hau
The main advantage of trading using opposite Saigon Viendong and Hung Hau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Hung Hau 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 Hung Hau will offset losses from the drop in Hung Hau'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 |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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