Correlation Between Saigon Viendong and Tin Nghia
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Tin Nghia 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 Tin Nghia 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 Tin Nghia Industrial, you can compare the effects of market volatilities on Saigon Viendong and Tin Nghia 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 Tin Nghia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Tin Nghia.
Diversification Opportunities for Saigon Viendong and Tin Nghia
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saigon and Tin is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Tin Nghia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tin Nghia 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 Tin Nghia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tin Nghia Industrial has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Tin Nghia go up and down completely randomly.
Pair Corralation between Saigon Viendong and Tin Nghia
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate about the same return on investment as Tin Nghia Industrial. However, Saigon Viendong is 1.08 times more volatile than Tin Nghia Industrial. It trades about 0.04 of its potential returns per unit of risk. Tin Nghia Industrial is currently producing about 0.05 per unit of risk. If you would invest 1,554,755 in Tin Nghia Industrial on September 12, 2024 and sell it today you would earn a total of 735,245 from holding Tin Nghia Industrial or generate 47.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.33% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Tin Nghia Industrial
Performance |
| Timeline |
| Saigon Viendong Tech |
| Tin Nghia Industrial |
Saigon Viendong and Tin Nghia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and Tin Nghia
The main advantage of trading using opposite Saigon Viendong and Tin Nghia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Tin Nghia 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 Tin Nghia will offset losses from the drop in Tin Nghia'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 |
| Tin Nghia vs. POST TELECOMMU | Tin Nghia vs. Construction And Investment | Tin Nghia vs. Dinhvu Port Investment | Tin Nghia vs. Petrolimex Information Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |