Correlation Between Saigon Viendong and Thu Duc
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Thu Duc 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 Thu Duc 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 Thu Duc TradingImport, you can compare the effects of market volatilities on Saigon Viendong and Thu Duc 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 Thu Duc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Thu Duc.
Diversification Opportunities for Saigon Viendong and Thu Duc
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saigon and Thu is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Thu Duc TradingImport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thu Duc TradingImport 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 Thu Duc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thu Duc TradingImport has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Thu Duc go up and down completely randomly.
Pair Corralation between Saigon Viendong and Thu Duc
Assuming the 90 days trading horizon Saigon Viendong is expected to generate 9.21 times less return on investment than Thu Duc. In addition to that, Saigon Viendong is 1.52 times more volatile than Thu Duc TradingImport. It trades about 0.02 of its total potential returns per unit of risk. Thu Duc TradingImport is currently generating about 0.3 per unit of volatility. If you would invest 810,000 in Thu Duc TradingImport on October 17, 2024 and sell it today you would earn a total of 50,000 from holding Thu Duc TradingImport or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.0% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Thu Duc TradingImport
Performance |
| Timeline |
| Saigon Viendong Tech |
| Thu Duc TradingImport |
Saigon Viendong and Thu Duc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and Thu Duc
The main advantage of trading using opposite Saigon Viendong and Thu Duc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Thu Duc 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 Thu Duc will offset losses from the drop in Thu Duc's long position.| Saigon Viendong vs. Hai An Transport | Saigon Viendong vs. LDG Investment JSC | Saigon Viendong vs. Din Capital Investment | Saigon Viendong vs. TDT Investment and |
| Thu Duc vs. Saigon Viendong Technology | Thu Duc vs. Truong Thanh Furniture | Thu Duc vs. Elcom Technology Communications | Thu Duc vs. Pha Lai Thermal |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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