Correlation Between Saigon Viendong and Techno Agricultural
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Techno Agricultural 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 Techno Agricultural 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 Techno Agricultural Supplying, you can compare the effects of market volatilities on Saigon Viendong and Techno Agricultural 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 Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Techno Agricultural.
Diversification Opportunities for Saigon Viendong and Techno Agricultural
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saigon and Techno is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno 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 Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Techno Agricultural go up and down completely randomly.
Pair Corralation between Saigon Viendong and Techno Agricultural
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate 1.36 times more return on investment than Techno Agricultural. However, Saigon Viendong is 1.36 times more volatile than Techno Agricultural Supplying. It trades about -0.11 of its potential returns per unit of risk. Techno Agricultural Supplying is currently generating about -0.38 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 | 95.24% |
| Values | Daily Returns |
Saigon Viendong Technology vs. Techno Agricultural Supplying
Performance |
| Timeline |
| Saigon Viendong Tech |
| Techno Agricultural |
Saigon Viendong and Techno Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and Techno Agricultural
The main advantage of trading using opposite Saigon Viendong and Techno Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Techno Agricultural 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 Techno Agricultural will offset losses from the drop in Techno Agricultural'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 |
| Techno Agricultural vs. Long An Food | Techno Agricultural vs. Ducgiang Chemicals Detergent | Techno Agricultural vs. MST Investment JSC | Techno Agricultural vs. Construction And Investment |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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