Correlation Between Saigon Viendong and Transimex Transportation
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Transimex Transportation 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 Transimex Transportation 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 Transimex Transportation JSC, you can compare the effects of market volatilities on Saigon Viendong and Transimex Transportation 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 Transimex Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Transimex Transportation.
Diversification Opportunities for Saigon Viendong and Transimex Transportation
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saigon and Transimex is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Transimex Transportation JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transimex Transportation 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 Transimex Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transimex Transportation has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Transimex Transportation go up and down completely randomly.
Pair Corralation between Saigon Viendong and Transimex Transportation
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate 0.5 times more return on investment than Transimex Transportation. However, Saigon Viendong Technology is 1.99 times less risky than Transimex Transportation. It trades about -0.11 of its potential returns per unit of risk. Transimex Transportation JSC is currently generating about -0.09 per unit of risk. If you would invest 1,155,000 in Saigon Viendong Technology on August 27, 2024 and sell it today you would lose (35,000) from holding Saigon Viendong Technology or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Transimex Transportation JSC
Performance |
| Timeline |
| Saigon Viendong Tech |
| Transimex Transportation |
Saigon Viendong and Transimex Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and Transimex Transportation
The main advantage of trading using opposite Saigon Viendong and Transimex Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Transimex Transportation 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 Transimex Transportation will offset losses from the drop in Transimex Transportation's long position.| Saigon Viendong vs. Thanh Dat Investment | Saigon Viendong vs. HVC Investment and | Saigon Viendong vs. Tien Giang Investment | Saigon Viendong vs. Sea Air Freight |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |